Oil prices fell after OPEC+ decided to increase production by 547,000 barrels/day in September. However, traders remain cautious about possible new sanctions against Russia.
Brent crude oil fell 85 cents (1.2%) to $68.82 as of 0846 GMT on Monday, while US West Texas Intermediate (WTI) oil fell 82 cents (1.2%) to $66.51.
Both contracts had lost approximately $2 on Friday.OPEC+ and its allies decided on Sunday to increase production by 547,000 barrels per day. This is seen as part of accelerated production increases aimed at regaining market share. Goldman Sachs analysts predict that the eight OPEC+ members, who have increased production since March, will provide a total supply increase of 1.7 million barrels per day.
Meanwhile, investors continue to assess the impact of the new US tariffs on trading partners. However, Trump’s threat to impose 100% secondary tariffs on Russia is creating concern in the markets.
PVM analyst Tamas Varga said, “In the medium term, oil prices will be shaped by tariffs and geopolitical risks. Price increases triggered by energy sanctions will be temporary.”Due to new sanctions, two Russian oil tankers bound for India have been diverted to new routes. This threatens the supply of 1.7 million barrels/day of oil. However, the Indian government has stated that it will continue to buy oil from Russia despite Trump’s threats.
