Oil prices fall on OPEC+ output hike bets, US tariff concerns

Oil prices slipped on Tuesday as markets braced for a potential output increase by the OPEC+ alliance in August and rising fears that looming US tariffs could drag down the world’s largest oil-consuming economy.

International benchmark Brent crude fell by 0.09%, trading at $66.40 per barrel at 10 a.m. local time (0700 GMT), down from $66.46 at the previous session’s close.

Similarly, US benchmark West Texas Intermediate (WTI) decreased by about 0.13%, reaching $64.33 per barrel, compared to $64.42 in the prior session.

Analysts expect OPEC+, which includes major producers like Saudi Arabia, Russia, and the UAE, to agree on a production hike of 411,000 barrels per day at its July 6 meeting.

The increase would raise the group’s total planned 2025 boost to 1.78 million barrels per day, roughly 1.5% of global demand.

Expectations of higher output have eased supply concerns, putting downward pressure on prices.

At the same time, markets are watching closely as the US approaches the end of a 90-day tariff delay period next week, another factor weighing on oil prices.

US Treasury Secretary Scott Bessent told Bloomberg on Monday that if negotiations with certain countries fail due to what he called “stubbornness,” tariffs could revert to levels announced on April 2.

Bessent warned that countries could still face sharply higher tariffs on July 9 even if they are negotiating in good faith, adding that any potential extensions will be up to President Donald Trump.

“We have countries that are negotiating in good faith, but they should be aware that if we can’t get across the line because they are being recalcitrant, then we could spring back to the April 2 levels. I hope that won’t have to happen,” Bessent said.

On April 2, a date Trump referred to as “Liberation Day” the US announced a baseline tariff rate of 10%, with country-specific rates depending on the trade barriers faced by American exports. A week later, on April 9, Trump granted a 90-day pause on additional tariffs for countries other than China.

Experts say Washington’s tariff stance could slow short-term economic growth, weakening energy demand and further dragging on prices.

By Humeyra Ayaz