Oil prices fall after OPEC+ announces another production increase over the weekend

Oil prices are falling on global markets today. The decline is being driven by the OPEC+ group’s announced production increase and concerns about weaker global demand, Reuters reported. Threats by US President Donald Trump against India over its purchases of Russian oil prevented a steeper drop.

At around 16:50 CEST, North Sea Brent crude was down 1.06 percent at USD 68.03 a barrel, while US light crude WTI was down 1.03 percent at USD 66.61 a barrel at the same time.

The OPEC+ group, made up of members of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, announced an agreement over the weekend to increase oil production by 547,000 barrels per day in September. Production cuts will therefore end earlier than originally planned.

Trump again threatened today to raise tariffs on Indian goods over purchases of Russian oil. The movement in oil prices since Trump’s threat suggests that traders are sceptical about supply disruptions, according to John Evans, an analyst at PVM, a brokerage specialising in the oil market. In his report, he questioned whether Trump would risk higher oil prices.

"I would call it a stable oil market," said Giovanni Staunovo, an analyst at Swiss bank UBS.

"I expect it to continue this way until we find out what the US president announces regarding Russia later this week and how buyers respond," he added.

Oil prices in dollars per barrel (about 159 litres):