Oil prices fell on Monday after OPEC+ surprised markets by increasing production more than expected for August, while uncertainty over U.S. tariffs raised concerns about global economic growth and demand.
Brent crude dropped from 47 cents (0.69%) to $67.83 a barrel, and U.S. West Texas Intermediate fell from $0.95 (1.42%) to $66.05 by 0327 GMT.
OPEC+ agreed on Saturday to boost output by 548,000 barrels per day in August, higher than previous monthly increases of 411,000 bpd in May through July.
Analysts say this signals more aggressive competition for market share, even if prices and revenues dip. Most of the extra supply so far has come from Saudi Arabia.
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Saudi Arabia also raised the price for its Arab Light crude to a four-month high in Asia, showing confidence in demand.
Meanwhile, U.S. officials delayed details on tariffs originally set to rise August 1, creating more uncertainty. President Trump said higher tariff rates would be announced by July 9, but tariff values remain unclear.
“Concerns over tariffs remain a key theme for the second half of 2025, with dollar weakness offering the only support for oil,” said market analyst Priyanka Sachdeva.
