Oil Prices Slide After OPEC+ Pledges 548,000 bpd August Output Hike
Oil prices fell over 1% after OPEC+ announced a surprise 548,000 bpd output hike for August. Brent slid to $67.50, WTI to $65.68. Analysts warn of more production increases and sustained pricing pressure
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Crude oil prices dropped more than 1% on Monday after OPEC+ announced an upbeat production increase of 548,000 barrels per day (bpd) for August—significantly more than the 411,000 bpd increase predicted for May to July. The alliance cited improving global economic fundamentals and low inventories as reasons to swiftly roll back voluntary cuts implemented since 2023.
As a result:
Brent crude fell ~1.2% to about $67.50/bbl .
U.S. WTI crude dropped ~1.4% to around $65.68/bbl .
Analysts reported this shift marks a strategic pivot by major oil-producing countries—chiefly Saudi Arabia and Russia—toward recapturing market share from high-cost producers like U.S. shale, even if that imperils revenue and keeps prices subdued.
Looking ahead, Goldman Sachs projects another similar production increase (~550,000 bpd) in September and forecasts Brent prices averaging $59/bbl by Q4 2025.
On the demand side, easing geopolitical tensions in the Middle East and delayed U.S. tariff implementations (now scheduled for August 1) also weighed on oil sentiment.
- Massive output increase of 548,000 bpd announced for August
- Brent and WTI both fell over 1% to ~$67.50 and ~$65.68, respectively
- Strategy signals OPEC+ focus on market share over price support
- Markets anticipate further boosts in September
- External factors like tariffs and geopolitical calm amplify downside pressure
