Oil prices fall, OPEC+ considers latest production hike
Crude oil prices (CL=F, BZ=F) slip on Thursday after OPEC+ considers another production hike by 411,000 additional barrels per day in July, according to Bloomberg reports.
Yahoo Finance senior markets reporter Ines Ferré summarizes the current supply and demand concerns in oil markets.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
Oil prices falling after Bloomberg reported OPEC+ is considering a third consecutive production increase for July, prompting supply and demand concerns here with more. We've got senior Yahoo Finance senior markets reporter Ines Ferre to break it down. Hey, Ines.
Hey, Brad. And this certainly supports the idea that OPEC+ really has abandoned its strategy of keeping prices uh uh higher by doing cuts. Namely, they have been out doing these output increases over and over now. So they first remember that they first announced that they were going to increase the output of on barrels of oil by 411,000 uh per day for May. Then they announced another 411,000 per day for June. And now they're considering the same amount for July. Now, this doesn't come as much too much of a surprise for for Wall Street analysts. They have been predicting that OPEC+ would do this again in July. And the reasons for this is one to regain market share because they have lost market share over the last several years. The other is also to punish some of the members that have been increasing more than they should have because of their quotas. And also to get into the good graces of President Trump. Remember that OPEC is led by Saudi Arabia. There is a good relationship there between Saudi Arabia and President Trump. And Trump has very explicitly said that he wants the price of oil lower. I spoke to one analyst that told me OPEC holds the cards when it comes to the price of oil right now. And Golden Sachs is predicting, this is why we're seeing Wall Street has been lowering their price target on oil because they are predicting now that oil is going to average for Brent $60 per barrel for 2025 and $56 per barrel for WTI. If we take a look now, we're seeing that you've got Brent down more than 1% right now, but year to date, down 15%. For WTI year to date, we're down 17%, guys.
Ines, thank you. Appreciate it.
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