Oil Extends Losses as Focus Shifts to OPEC Hikes, Tariffs


   
Karim Bastati
DTN Analyst

   VIENNA (DTN) -- Oil prices slid for a third day Wednesday morning as fears 
of near-term supply disruptions gave way to concerns over a looming supply glut 
later this year. The anticipated return of higher tariffs starting August 1 is 
likely to stymie demand growth at a time when OPEC's production hikes have 
considerably picked up the pace.

   NYMEX-traded WTI for August delivery fell $0.59 to trade near $65.93 bbl, 
and ICE Brent for September delivery slid $0.51 bbl to $68.20 bbl.

   August RBOB gasoline futures softened $0.0146 to $2.1550 gallon, and the 
front-month ULSD futures contract retreated $0.0116 to trade near $2.3936 
gallon.

   The U.S. dollar index gained 0.140 points to 98.450.

   With the prospect of immediate additional sanctions on Russian energy trade 
waning following U.S. President Trump granting Russia a 50-day grace period, 
market participants are focusing on a looming oil glut this year. According to 
OPEC's monthly oil market report released Tuesday, the organization is 
unwinding production cuts at the fastest pace so far. OPEC crude oil production 
rose 220,000 bpd in June despite a drop in Libyan and Iranian output. Members 
of the declaration of cooperation, colloquially known as OPEC+, raised output 
by a combined 349,000 bpd from May. The eight member countries who have since 
2023 shouldered an additional 2.2 million bpd in voluntary adjustments ramped 
up production by 395,000 bpd, close to in line with their 411,000 bpd target.




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