Oil falls as OPEC+ hikes August output.
Oil prices slipped on Monday after OPEC+ surprised markets by hiking output more than expected in August, while uncertainty over U.S. tariffs and their potential impact on global economic growth weighed on demand expectations.
Brent crude futures fell 24 cents, or 0.35%, to $68.06 a barrel by 0642 GMT, while U.S. West Texas Intermediate crude was at $66.31, down 69 cents, or 1.03%.
The Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, agreed on Saturday to raise production by 548,000 barrels per day in August.
“The increased production clearly represents a more aggressive competition for market share and some tolerance for the resulting decline in price and revenue,” Tim Evans of Evans Energy said in a note.
The August increase is a jump from monthly increases of 411,000 bpd OPEC+ had approved for May, June and July, and 138,000 bpd in April.
The decision will bring nearly 80% of the 2.2 million bpd voluntary cuts from eight OPEC producers back into the market, RBC Capital analysts led by Helima Croft said in a note.
Gold prices fall amid Trump tariff extension.
Gold prices fell in Asian trade on Monday, pressured by a steady dollar amid more tariff threats from U.S. President Donald Trump, while strong payrolls data from last week also dented bets that interest rates will fall soon.
Trump’s tariff threats spurred little safe haven demand, given that the president also postponed his effective trade tariff deadline to August 1 from July 9.
The U.S. president threatened higher tariffs against the BRICS bloc of countries, and said he will begin issuing letters with his planned tariffs to major countries starting from Monday.
Spot gold fell 0.7% to $3,312.12 an ounce, while gold futures for September fell 0.8% to $3,320.67/oz by 00:10 ET (04:10 GMT).
Trump threatens additional BRICS tariff, extends July 9 deadline
Trump on Sunday signaled that his tariff increases will now take effect from August 1 instead of July 9, likely giving countries more time to hash out U.S. trade deals.
. European stocks mixed.
European stocks traded in a mixed manner Monday as investors awaited U.S. President Donald Trump’s July 9 deadline for trade agreements with a great deal of uncertainty.
At 03:05 ET (07:05 GMT), the DAX index in Germany gained 0.3%, the CAC 40 in France climbed 0.1%, while the FTSE 100 in the U.K. fell 0.1%.
Trade deals deadline draws nearer
With just a couple of days to go until the U.S. president‘s deadline, global investors are on edge to see if the United States forges any agreements with trading partners as they seek to avoid higher levies.
Trump paused many of the harshest U.S. tariffs for 90 days after his April 2 “Liberation Day” announcement roiled global markets in order to provide time for countries to negotiate trade deals.
Trump said on Sunday his administration was close to finalising deals with several trade partners and will send letters notifying others by July 9 of higher rates that will kick in from August 1.
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