Oil prices fell in Asian trade on Monday after the OPEC+ agreed to further increase production in September, while concerns over a cooling U.S. economy and trade tariffs also weighed.
Crude prices extended losses from Friday after softer-than-expected U.S. nonfarm payrolls data raised concerns over the world’s biggest fuel importer. Uncertainty over President Donald Trump’s trade tariffs also weighed, after he outlined steep duties against at least 70 countries.
Brent oil futures for September fell 0.5% to $69.35 a barrel, while West Texas Intermediate crude futures fell 0.3% to $65.90 a barrel by 21:40 ET (01:40 GMT).
But both contracts clocked some gains last week as the U.S. threatened more sanctions on Russian oil, which could tighten global supplies.
OPEC+ agrees to output hike in Sept The Organization of Petroleum Exporting Countries and allies (OPEC+), on Sunday agreed to raise oil production by 547,000 barrels per day in September, a similar margin as that agreed for August.
The hike was in line with expectations but marked a sixth consecutive month that the cartel agreed to increase production. This came as the cartel steadily winds down two years of supply cuts.
The OPEC+ had hiked production by about 548,000 bpd in August and about 411,000 bpd in July.
The OPEC’s decision to increase production pushed up market fears of increased supplies in the coming months, which could in turn offset the impact of tighter U.S. sanctions on Russia.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Weak US data fuels demand concerns Markets were also on edge over potential cooling in U.S. fuel demand, especially as nonfarm payrolls data pointed to deterioration in the labor sector.
The reading came amid heightened uncertainty over the impact of Trump’s trade tariffs, a bulk of which will take effect in the coming days.
Weak purchasing managers index data also pointed to a deterioration in U.S. business activity, which bodes poorly for oil demand.
But Trump provided some support to oil prices last week after he threatened to tariff major buyers of Russian oil, specifically China and India. Trump also threatened military action against Russia over the Ukraine conflict.
