Oil prices fell sharply in Asian trading on Monday after OPEC+ announced a bigger-than-expected production boost for August, fueling concerns over oversupply.

As of 21:06 ET (01:06 GMT), Brent crude futures for September delivery declined 1.1% to $67.50 per barrel, while West Texas Intermediate (WTI) futures dropped 2.1% to $65.59 per barrel. Both contracts had gained 1–2% last week following sharp losses in late June.

OPEC+ Raises Output More Than Forecast

OPEC+ declared an increase of 548,000 barrels per day (bpd) for August, exceeding market expectations and surpassing previous monthly increases of 411,000 bpd in May, June, and July—each already three times the originally planned tapering. The group also signaled the possibility of another 548,000 bpd hike in September.

This continued rollback of voluntary cuts totaling 2.2 million bpd by major producers such as Saudi Arabia and Russia signals a shift from defending prices to defending market share. Analysts at ING note that larger supply hikes will likely deepen the oil market surplus later this year, putting further downward pressure on prices.

U.S. Tariff Deadline Postponed to August 1

The OPEC+ decision comes amid global economic uncertainties, including concerns about China’s growth and ongoing U.S. trade policy developments. President Donald Trump announced a delay in tariff implementation, extending the deadline from July 9 to August 1. This shift adds uncertainty to the trade outlook, as fears of trade barriers potentially dampening economic activity and energy demand persist.

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