ISLAMABAD: Oil prices are headed for a weekly decline as ongoing tariff disputes in the United States create market uncertainty, while global attention turns to the upcoming OPEC+ meeting where a potential production increase is expected.
Brent crude futures slipped 26 cents, or 0.41%, settling at $63.89 per barrel, with U.S. West Texas Intermediate crude also down 27 cents, or 0.44%, at $60.67 per barrel.
Impact of US Tariff Legal Battles on Oil Markets
The volatile legal situation surrounding President Donald Trump’s tariffs continues to influence oil prices. After a federal appeals court temporarily reinstated the tariffs, reversing a prior trade court decision that had blocked them, traders are navigating mixed signals on trade policy.
The initial blocking of tariffs caused oil prices to drop over 1%, but with the reinstatement, the market faces renewed uncertainty as the legal battles unfold.
Analysts caution that this back-and-forth could keep oil prices under pressure in the short term as companies adjust to changing trade dynamics.
OPEC+ Production Hike and Member Disputes
Meanwhile, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are preparing to decide on a July production hike during their upcoming meeting.
The group is also dealing with internal tensions, particularly with Kazakhstan refusing to cut output despite exceeding agreed production limits. Kazakhstan’s energy officials argue their production share is small—less than 2% of global supply—and that oil prices between $70 and $75 per barrel should satisfy all members.
However, this stance complicates OPEC’s efforts to manage supply and stabilize prices.
Commodity analysts suggest the forthcoming production increase could be larger than the previous hikes of 411,000 barrels per day, potentially putting further downward pressure on prices.
Market watchers remain cautious as these developments unfold, balancing trade uncertainties with supply decisions.
