Oil price drops to $66.44/barrel

Oil prices edged down on Tuesday, July 1, 2025, weighed by expectations of an OPEC+ output hike in August.

Brent crude fell 30 cents, or 0.5%, to $66.44 a barrel by 0430 GMT, while U.S. West Texas Intermediate crude edged lower 33 cents, or 0.5%, to $64.78 a barrel.

“The market is now concerned that the OPEC+ alliance will continue with its accelerated rate of output increases,” ANZ senior commodity strategist Daniel Hynes said in a statement.

Four OPEC+ sources told Reuters last week that the group plans to raise output by 411,000 barrels per day in August, following similar hikes in May, June, and July.

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If approved, this would bring OPEC+’s total supply increase for the year to 1.78 million bpd, equivalent to more than 1.5% of global oil demand.

OPEC and its allies including Russia, together known as OPEC+, will meet on July 6.

“These larger supply increases should leave the global oil market well supplied for the remainder of the year,” ING commodities strategists said.

A 12-day war that started with Israel targeting Iran’s nuclear facilities on June 13 pushed up Brent prices. They surged above $80 a barrel after the U.S. bombed Iran’s nuclear facilities and then slumped to $67 after United States President Donald Trump announced an Iran-Israel ceasefire.

The Star