- WTI price drifts higher to $61.90 in Monday’s Asian session, adding 2.70% on the day.
- Persistent tariff uncertainty continues to weigh on the INR.
- OPEC+ decided to raise output by 411,000 bpd in July, the third straight month of the same hike.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $61.90 during the Asian trading hours on Monday. The WTI price jumps due to ongoing tariff uncertainty and the persistent geopolitical tensions in the Middle East.
US President Donald Trump’s tariffs raised concerns about global economic weakness, which might drag the price of black gold lower. Trump claimed on Friday that China had violated their trade agreement. Investors will closely monitor the developments surrounding US-China trade talks as US Treasury Secretary Scott Bessent said on Sunday that Trump and Chinese President Xi Jinping are likely to speak soon to iron out trade issues including a dispute over critical minerals.
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) announced Saturday that it will increase oil output by 411,000 barrels a day (bpd) in July, following an increase in May and June. OPEC+ noted in a statement that a “steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories” was its reasoning for the July increase. Analysts said an increased supply might weigh on crude prices, squeezing all producers, but some more than others, including a key group of rivals – US shale producers.
Oil traders await the release of the US May ISM Manufacturing Purchasing Managers’ Index (PMI) report, which is due later on Monday. In case of a stronger-than-expected outcome, this could lift the Greenback and undermine the USD-denominated WTI price.
