August 5, 2025
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Economy

Oil prices fall amid rising supply and demand concerns

Oil prices fall amid rising supply and demand concernsBrent and WTI crude futures fell amid concerns about OPEC+’s oversupply and a weak demand outlook. This is the fourth consecutive decline for both contracts, which reached their lowest level in a week.

”, — write: unn.ua

Oil prices fell on Tuesday amid oversupply concerns, as OPEC+ again significantly increased production despite a weak demand outlook, more than offsetting the possibility of tighter conditions for Russian oil trade due to US policy, UNN reports with reference to Reuters.

DetailsAs of 04:24 GMT (07:24 Kyiv time), Brent crude futures fell by 11 cents, or 0.16%, to $68.65 per barrel. US West Texas Intermediate crude fell by 12 cents, or 0.18%, to $66.17 per barrel.

This is the fourth consecutive decline for both contracts, which fell by more than 1% in the previous session, reaching their lowest level in a week.

Both benchmark grades fell in price, as additional OPEC+ capacity acts as a buffer for a possible shortage of Russian barrels, noted Priyanka Sachdeva, senior market analyst at Phillip Nova.

OPEC+ on Sunday agreed to increase oil production by 547,000 barrels per day in September.

The increase in supply is accompanied by demand concerns, with some analysts expecting an economic slowdown in the second half of the year.

JPMorgan analysts said on Tuesday that the risk of a recession in the US is high, as labor demand has slowed. In addition, the July meeting of the Politburo of the CPC Central Committee did not signal further monetary easing, as the main focus is now on structural rebalancing of the world’s second largest economy, analysts note.

The prospect of weak economic performance overshadows fears of possible supply disruptions, which previously supported oil prices.

US President Donald Trump announced the possibility of imposing a 100% secondary duty on buyers of Russian oil, such as India, after announcing in July the imposition of a 25% duty on Indian oil imports.

US warns China on Russian oil purchases that could bring 100% tariffs30.07.25, 08:14 • 5136 views

On Monday, Trump again threatened to raise tariffs on Indian goods in response to the purchase of Russian oil. New Delhi called his attacks “unjustified” and promised to defend its economic interests, which intensified the trade rift between the two countries.

India reacted to Trump’s criticism and threats over trade with Russia04.08.25, 21:59 • 3814 views

According to data provided by trade sources, India is the largest buyer of seaborne oil from Russia, importing about 1.75 million barrels per day from January to June this year, which is 1% more than a year earlier.

Traders are also awaiting developments regarding the latest US tariffs on its trading partners, which analysts fear could slow economic growth and reduce fuel demand.

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