Crude prices fell sharply in Asia on Monday after OPEC+ said it would increase crude output more than expected next month.
At the same time, markets also watched US trade talks. President Donald Trump said he might delay new tariffs from July 9 to August 1, as investors focused on trade issues.
Oil prices rose 1%–2% last week after falling sharply in late June. On Saturday, OPEC+ (a group of oil-producing countries including Saudi Arabia and Russia) said it would increase output by 548,000 barrels per day in August. That would be more than the 411,000 barrels per day increases already planned for May, June and July,
Adding more oil to the market could lead to an oversupply later this year, which could push prices down further.
The decision comes amid growing concerns about slowing economic growth in key countries like China and uncertainty over US trade policies and tariffs.
These trade concerns are also weighing on the future of global demand, as investors fear tariffs will slow the economy and reduce energy use.
