Wti Moves Lower

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Wti Moves Lower

Wti Moves Lower On Opec+ Output Boost

West Texas Intermediate (WTI) is under pressure and is trading below the $70.00 handle. The key reason behind the WTI weakness is the OPEC+ decision to increase oil production.

According to analysts, the OPEC+ decision will lead to an oversupply of oil in the market. And if the demand remains the same, the most natural reaction will be lower prices, and that's what we are seeing in the market.

Sanctions On Russian Oil Exports

The Bloomberg report suggests that the OPEC+ will boost its oil production starting from September. The increase is around 547,000 barrels/day. The reason behind this increase is to counter the supply disruptions from Russia.

Recently, the USA has imposed more sanctions on Russian oil and is also pushing countries like India to stop buying oil from Russia. With this development, the OPEC+ has decided to fill the gap by ramping up production.

The OPEC+ first increased its output starting from April 2025. This was followed by more rises in May, June, and even July 2025. Now, the same is scheduled for August and September 2025.

Meanwhile, the US jobs data remains consistently weak, which is also a sign of economic slowdown. This comes as the USA is finalising the tariff deals with many countries around the world.

In general, a weaker US economy would mean less consumption of oil. Once again, that's something which will have a negative impact on the WTI prices.

Now, the biggest concern for the oil market is the US sanctions on the export of Russian crude oil. The US president has once again stressed the need for these sanctions.

Countries like India need to buy oil from other countries to keep their economy running. So if they can't buy from Russia or Iran, they will have to find new sources anyway.

This gives a little hope that the decline in the WTI will be short-lived and will likely stop in the coming months.

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