North Sea crude oil, a benchmark in Europe, concluded the transactions at the Intercontinental Exchange trading at $1.28 above the $68.30 at which it closed the previous session.
Brent began the week hovering around the $70 per barrel mark, with the market seemingly dismissing the decision by the Organization of the Petroleum Exporting Countries (OPEC+), which agreed on Saturday to increase its crude oil supply by 548,000 barrels per day (bpd) starting August 1st. This figure is significantly higher than the 137,000 bpd over the past three months and what the markets had anticipated.
According to Forex market analyst Razan Hilal, despite the downward pressure, several bullish factors are “supporting” crude prices, as investors view OPEC+’s confidence in eliminating production cuts as “a more optimistic outlook on supply and demand.”
Hilal also highlighted demand sentiment drivers such as the weakness of the U.S. dollar, which lowers oil prices for purchasers using other currencies, expectations of interest rate cuts by the U.S. Federal Reserve (Fed), and potential trade deals between the U.S. and its global partners.
Regarding this last point, U.S. President Donald Trump announced an extension of the deadline for concluding tariff negotiations, initially set to end on Wednesday, to August 1st, as agreements with several key partners, including the European Union, remain incomplete.
