Oil prices decrease on the increase in the offer

Oil prices decreased on Tuesday 5 August 2025, on concerns due to excess offer since OPEC+ went on with another great increase in production despite a weak view of demand.

The Futures on Brent’s crude oil dropped by 11 cents, equal to 0.16%, at $ 68.65 per barrel of 0424 GMT, while the intermediate crude of the western Texas of the United States was down 12 cents, equal to 0.18%, at $ 66.17 per barrel.

It was the fourth consecutive decline for both contracts, which decreased by more than 1% in the previous session to settle down in a week.

Both reference parameters have withdrawn because an additional capacity from OPEC+ acts as a buffer for any deficiencies in the Russian barrels, said Priyanka Sachdeva, a senior market analyst by Phillip Nova.

The organization of the oil exporting countries and its allies, together as OPEC+, agreed on Sunday to increase the production of oil by 547,000 barrels per day for September.

It marks a complete and early reversal of the largest tranche of the group’s output cuts, equal to about 2.5 million BPDs, or about 2.4% of the global demand, although analysts will take place that the actual amount that returns to the market will be lower.

The increasing supplies are combined with concerns about demand, with some analysts who expect that they falter economic growth in the second half of the year.

On Tuesday JPMorgan analysts declared that the risk of an American recession was high since the job demand blocked.

In addition, the Chinese Politburo meeting did not report further policies with the attention that moved to the structural re -financement of the second largest world economy in the world, analysts wrote in a note.

The prospect of weak economic foundations is in shade the concerns about the possible interruptions of the offer that previously support oil prices.

The President of the United States Donald Trump said he could impose 100% secondary rates on Russian crude oil buyers such as India after having announced a 25% rate on Indian imports in July.

On Monday Trump has again threatened the highest rates on Indian assets for Russian oil purchases.

India defined the “unjustified” Trump attack and promised to protect its economic interests, deepening the split between the two countries.

India is the largest buyer of maritime crude oil from Russia, importing about 1.75 million BPDs from January to June of this year, growing 1% compared to a year ago, according to data provided to reuters of commercial sources.

The traders are also waiting for any developments on the latest US rates on its commercial partners, which analysts fear could slow down economic growth and dampen the demand for fuel.

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