Oil Prices Slide on OPEC+ Output Raise Outlook
Oil prices slide in the global commodity market amid signs of renewed nuclear diplomacy between the US and Iran, expectations of increased output from the OPEC+ alliance, and ongoing concerns over US’ protectionist trade policies.
International benchmark Brent crude fell by 0.21%, trading at $68.41 per barrel, down from $68.56 at the previous session’s close. Similarly, US benchmark West Texas Intermediate (WTI) decreased by about 0.12%, settling at $66.24 per barrel, compared to $66.32 in the prior session.
The potential for renewed diplomacy between Tehran and Washington has eased fears of conflict in the Middle East and helped reduce oil supply concerns, contributing to the decline in prices.
Iran reaffirmed its commitment to the Nuclear Non-Proliferation Treaty (NPT) and its Safeguards Agreement, one day after President Masoud Pezeshkian signed a new law mandating reduced cooperation with the International Atomic Energy Agency (IAEA).
“In accordance with the new legislation by Majlis (parliament), sparked by the unlawful attacks against our nuclear facilities by Israel and the US, our cooperation with IAEA will be channeled through Iran’s Supreme National Security Council for obvious safety and security reasons,” Iranian Foreign Minister Abbas Araghchi said on his X account.
The move follows a report by the US news website Axios that Washington plans to hold direct nuclear talks with Iran in Norway next week.
US President Donald Trump’s Middle East representative, Steve Witkoff, is expected to meet Iranian Foreign Minister Araghchi for the first time since tensions escalated following Israeli strikes and a subsequent US bombing of Iranian nuclear facilities, according to two sources familiar with the matter.
Sources said a final date has not yet been confirmed for the discussions in Oslo. Meanwhile, expectations that OPEC+ may raise output in August are boosting supply forecasts and putting further downward pressure on prices.
The eight OPEC+ member countries, Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, are expected to set their production levels at a meeting on Sunday.
The group began gradually easing voluntary production cuts in April, with similar increases implemented in May, June, and July. A further hike in August would mark the fifth consecutive monthly increase.
Additionally, traders remain cautious amid rising uncertainty over US trade policy. Trump announced that he will send letters to various countries stating how much tariffs they will pay, possibly beginning Friday, as the tariff deadline, July 9, is just days away.
Trump said the letters will specify how much each nation will have to pay, such as “a 20%, 25%, or 30% tariff.” Nigeria to End Diesel Dependency, Cut Carbon Emissions – Shettima
