Oil Prices Retreat as Markets React to Tariffs and OPEC+ Output Increase

PUKMEDIA

Oil prices.

Oil prices fell on Tuesday, 8 July 2025, following an almost 2% surge in the previous session, as investors responded to the latest developments regarding United States tariffs and a larger-than-anticipated production increase from the OPEC+ alliance for August.

According to Reuters, Brent crude futures declined by 22 cents, or 0.3%, to $69.36 per barrel by 06:30 GMT. Meanwhile, U.S. West Texas Intermediate crude dropped 27 cents, or 0.4%, to $67.66 per barrel.

On Monday, U.S. President Donald Trump informed trade partners—including major suppliers such as South Korea and Japan, as well as smaller exporters like Serbia, Thailand, and Tunisia—that significantly higher U.S. tariffs would come into effect from 1 August. However, he later indicated that this deadline was not entirely fixed.

The announcement of these tariffs has introduced uncertainty into global markets, raising concerns about potential negative effects on the world economy and, by extension, on oil demand. Despite these worries, there are indications that current demand remains robust, particularly in the United States, the world’s largest oil consumer, which has lent support to prices.

On Saturday, the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) agreed to raise oil production by 548,000 barrels per day (bpd) in August, surpassing the 411,000-bpd increases implemented over the previous three months. This move effectively reverses nearly all of the 2.2 million-bpd voluntary cuts previously enacted by the group.

OPEC+ is expected to approve a further increase of approximately 550,000 bpd for September at its next meeting on 3 August, according to sources familiar with the discussions. This would complete the unwinding of all earlier production cuts.



PUKMEDIA