FX.co ★ Oil Subdued by OPEC+ Hike, Trade Woes

Oil prices, specifically West Texas Intermediate (WTI) crude futures, slipped toward $66 per barrel on Friday, extending a decline of over 6% from the previous day. This downward trend is largely attributed to the ongoing impact of OPEC+'s decision to increase output and prevailing global trade uncertainties. In a recent meeting, eight key OPEC+ countries agreed on a substantial production boost of 411,000 barrels per day for the upcoming month, significantly surpassing the anticipated 140,000 barrels and accelerating the planned schedule. The group described this adjustment as "equivalent to three monthly increments" and indicated the potential to pause or even reverse these increases depending on market conditions. Additionally, the market is grappling with widespread volatility triggered by unexpected increases in U.S. tariffs announced on Wednesday, which have led to retaliatory measures from significant global economies. Although energy imports remain unaffected, the looming threat of a global trade conflict could hinder economic growth and diminish fuel demand. As the week progresses, oil is poised for an approximate 4% decline.