OPEC+ Production Increase Sparks Market Concerns Over Oversupply

OPEC+ Announces Production Increase Amid Market Concerns The Organization of the Petroleum Exporting Countries and its allies (OPEC+) revealed plans to boost oil output by 547,000 barrels daily starting in September. This strategic move, aligning with market expectations, has reignited worries about oversupply in the global oil market, especially in light of ongoing economic uncertainties fueled by the US-China trade tensions. Following the announcement, Brent crude prices declined toward $69 per barrel, and West Texas Intermediate hovered around $67, signaling a significant price correction. The decision marks a departure from previous months of production cuts aimed at stabilizing prices amidst fluctuating demand. However, with economic slowdown concerns and trade disputes intensifying, analysts question whether increased supply could surpass demand, leading to further price declines. Trade conflicts, notably between the US and China, continue to disrupt global supply chains and dampen industrial activity, potentially reducing energy consumption. Weaker manufacturing outputs in key markets raise fears that energy demand may weaken further amid broader economic challenges. Major o...