Oil markets responded quickly after OPEC+ agreed to raise production for September. At the same time, importing crude oil from Russia are drawing sharp criticism in Washington and other western alliances.
Production Surge from OPEC+: Why It Matters
OPEC+, the alliance of key oil‐producing countries, declared a 547,000 barrels per day (bpd) increase in September supply. This marks the latest step in fully withdrawing a multi stage drop of 2.2 million bpd that started in late 2023.
The group mentioned a stable global economy and low inventories as justification for the move. Markets so far have absorbed the extra supply with only uncertain price declines.
Crude Price Reaction
By early Asian trading, Brent crude futures dropped 0.6% to about $69.24 per barrel, though U.S. West Texas Intermediate fell to $66.94, showing a decreasing trend from Friday.
Escalating US Pressure and Dialogue
Senior advisors to U.S. President Donald Trump have accused India of indirectly financing Russia’s war in Ukraine by continuing these oil imports. Washington has already imposed a 25% new tariff on Indian goods and warned of deeper penalties. India remains firm, citing energy security and affordability as top priorities.
OPEC+ Market Strategy: Rolling Reversal of Cuts
Since April 2025, OPEC+ members have increased production output. The alliance remains flexible, depicting it could pause or reverse the phase out if market conditions worsen. The next official meeting is scheduled for September 7, 2025.
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