Crude Oil prices set to drop as OPEC+ plans Production increase

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Crude oil prices took a hit this week, with Brent crude trading at $67.63 per barrel and West Texas Intermediate at $65.23 per barrel. The decline is attributed to OPEC+’s plan to increase oil production by 411,000 barrels per day in August, bringing the cumulative increase this year to 1.78 million barrels daily.

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“We do think the group is most likely to still go ahead with the August accelerated unwinding,” said Energy Aspects analyst Richard Bronze. OPEC+ is set to meet this Sunday to discuss next month’s production plans, with some sources suggesting the group may even boost output additions for August.

The global economic outlook remains uncertain, with factory data from China contributing to the bearish sentiment. Although manufacturing activity in China rose slightly to 49.7 this month, it remained below the 50 threshold that marks the difference between growth and contraction

Meanwhile, the active drilling rig count in the United States fell for another week, with oil rigs declining by six and gas rigs by two. The total number of active rigs across the US oil patch is now 34 rigs lower than it was a year ago.

Current Prices:

– Brent Crude: $67.63 per barrel

– West Texas Intermediate:* $65.23 per barrel

The market is closely watching OPEC+’s decision on production levels, which could have a significant impact on oil prices in the coming weeks.

Market Watch:

– Brent Crude: Downward pressure due to OPEC+ supply boost and ceasefire between Israel and Iran

– US Drilling: Active rig count falls to 34 rigs lower than last year

Stay tuned for further updates on the oil market and OPEC+’s production plans.

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