WTI Crude Falls to $65.00 as OPEC+ Surprises with Higher August Output

WTI Crude Falls to $65.00 as OPEC+ Surprises with Higher August Output

Oil Prices Slip on Oversupply Fears After OPEC+ Boosts Output

West Texas Intermediate (WTI) crude oil is facing renewed selling pressure, falling to around $65.00 in Monday’s early Asian session. The decline follows the OPEC+ decision to significantly increase oil production in August, a move that stoked market concerns over a potential supply glut.

On Saturday, the Organization of the Petroleum Exporting Countries and allies (OPEC+) agreed to boost combined crude output by 548,000 barrels per day (bpd) in August, according to Bloomberg. This increase is substantially above the expected 411,000 bpd and comes as the group continues reversing its previous voluntary production cuts.

The decision marks the fourth consecutive month of accelerated production increases, with May, June, and July already scheduled for similar 411,000 bpd hikes — each more aggressive than originally planned.

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Market Impact and Analyst Outlook

The sharper-than-expected output hike has fueled oversupply concerns, especially as global demand shows signs of slowing. Analysts warn that the move could trigger price pressure and revenue reductions, as oil-exporting nations battle for market share.

“The increased output naturally means a more contestable fight for market share and some acceptance of the resulting decrease in price and revenue,” said a market strategist.

Key Takeaways

• WTI crude trades near $65.00, down on OPEC+ supply news.
• OPEC+ raises August output by 548,000 bpd, surpassing market forecasts.
• Oversupply fears return, capping short-term oil price gains.
• Continued production hikes may pressure WTI prices in the coming weeks.

Conclusion

The WTI oil price remains under pressure amid a renewed supply wave driven by OPEC+’s aggressive output policy. Unless global demand rebounds significantly, oversupply risks may continue to weigh on the energy market in the near term.