Oil falls over 1% as OPEC+ mulls July output hike

Oil prices dropped more than 1 per cent on Thursday as reports surfaced that OPEC+ may raise production in July, sparking concerns about a potential supply glut.

Brent crude slipped $1.05, or 1.6 per cent, to $83.86 a barrel by 10:36 GMT, while US West Texas Intermediate (WTI) fell 98 cents, or 1.6 per cent, to $80.59.

According to Bloomberg, the producer group is weighing a production increase of 411,000 barrels per day, though no final decision is expected before its next meeting on June 1.

Adding further pressure, US government data showed an unexpected build in crude inventories. The Energy Information Administration (EIA) reported a 1.3 million barrel increase last week, defying forecasts for a drawdown.

Analysts said the potential shift marks a possible pivot away from OPEC+’s recent price-support strategy, with higher output — particularly from Saudi Arabia — aimed at defending market share. Softer demand in global fuel markets and rising US crude exports could further weigh on prices.

Attribution: Reuters

Subediting: Y.Yasser