Oil Market Stumbles Amid OPEC+ Output Hike and Tariff Uncertainty

Oil prices took a hit on Monday following an unexpected move by OPEC+ to ramp up production more than anticipated in August, sparking market surprise. The increased supply has led to Brent crude futures dropping 24 cents to $68.06 a barrel, while U.S. West Texas Intermediate crude fell 69 cents to $66.31.

OPEC+, which includes the Organization of the Petroleum Exporting Countries and allied nations, agreed to raise production by 548,000 barrels per day in August. This move marks a significant jump from prior monthly increases, reflecting heightened competition for market share despite potential revenue losses.

The oil market faces further pressure from looming U.S. tariff hikes. President Trump announced a base 10% tariff with possible reciprocal rates up to 50%, but precise details remain unclear, adding to investor concerns that economic activity could slow, affecting demand for oil.

(With inputs from agencies.)