WTI Crude Rebounds to $65.50 Despite OPEC+ Output Surge

WTI Oil Price Rebounds Despite Historic OPEC+ Output Increase

OPEC+ Surprises Markets with Larger Output Boost

West Texas Intermediate (WTI) crude oil prices rebounded to $65.50 per barrel in the European session on Monday, recovering from early session losses. The rebound came despite a significant development over the weekend: OPEC+ announced a larger-than-expected hike in Oil production starting in August.

According to Bloomberg, the alliance of oil-producing nations will collectively raise output by 548,000 barrels per day (bpd) — a figure well above the previously projected 411,000 bpd for the summer months.

Supply Shock Offset by US Trade Optimism

While increased production typically pressures prices, WTI found support on optimism surrounding new US trade deals. President Trump is expected to send formal letters to countries not yet part of pending trade agreements, outlining specific tariff levels. The market perceives this as a step closer to global trade normalization, offering bullish support to crude prices despite oversupply fears.

Oil Market Caught Between Supply Concerns and Policy Developments

The crude market is now grappling with two opposing forces — a supply glut from OPEC+ and improved trade sentiment out of the US. Analysts suggest that the next direction for oil will hinge on whether the global economy can absorb the additional output or whether demand will lag.

Outlook: Can WTI Sustain the Recovery?

Technically, WTI is showing signs of short-term recovery, but analysts remain cautious. A sustained move above $66.00 may be needed to confirm a bullish reversal, while geopolitical risks and US tariff developments could continue to inject volatility into oil markets.

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