04.06.202517:20:30UTC+00Oil Falls on Oversupply Concerns

WTI crude oil futures experienced a decline of over 1%, dropping to under $63 per barrel, following indications from Saudi Arabia of a potential significant increase in oil production. This move has sparked concerns about a potential global oil surplus. Reports suggest that Saudi Arabia is advocating for OPEC+ to raise output by at least 411,000 barrels per day in August, with the possibility of continuing this increase in September. The objective is to gain market share during the peak summer demand period. This development follows the announcement of a production increase for July, which was largely anticipated by the market. In the previous month, while Saudi Arabia led an increase in OPEC output, it refrained from utilizing its entire production quota. Concurrently, U.S. crude inventories decreased by 4.3 million barrels last week, indicating a tighter short-term supply situation, despite a decline in gasoline demand. Market participants remain wary due to ongoing trade tensions, as President Trump described China’s leader as "extremely hard" to negotiate with, which casts uncertainty over the global demand forecast.