Oil prices drop as OPEC+ set to raise output

Oil prices fell on Thursday, July 3, 2025, after gaining 3% in the previous session as major producers are expected to announce an output hike.

Brent crude futures fell 53 cents, or 0.77%, to $68.58 a barrel by 0536 GMT, while U.S. West Texas Intermediate crude declined 51 cents, or 0.76%, to $66.94 a barrel.

Both contracts rose to their highest in one week on Wednesday as Iran suspended cooperation with the U.N. nuclear watchdog, raising concerns the lingering dispute over the Middle East producer’s nuclear program may again devolve into armed conflict, and the United States and Vietnam reached a preliminary trade deal.

Still, there is increasing uncertainty around U.S. trade policy as the 90-day pause on the implementation of higher tariffs will end on July 9 without any new trade deals with several large trading partners such as the European Union and Japan.

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Additionally, the Organization of the Petroleum Exporting Countries (OPEC) and its allies such as Russia, known as OPEC+ will likely agreed to raise their output by 411,000 barrels per day (bpd) at their meeting this weekend, Reuters reported.

With the uncertainty around both events, and the upcoming July Fourth Independence Day holiday in the U.S., “market participants will probably not want to carry too much risk into the long U.S. weekend,” ING analysts said in a statement on Thursday.

Adding to the negative sentiment, a private-sector survey showed on Thursday service activity in China, the world’s biggest oil importer, expanded at the slowest pace in nine months in June as demand weakened and new export orders declined.

A surprise build in U.S. crude inventories also highlighted demand concerns in the world’s biggest crude consumer.

The Star