WTI Crude Oil Surges Above $62.00 Despite OPEC+ Output Hike and US-China Tensions

WTI Crude Price Jumps to $62.50 Amid Supply Hike and Geopolitical Risks

West Texas Intermediate (WTI) Crude Oil defies bearish market expectations by surging above $62.50 per barrel during Monday’s European session. Despite OPEC+ members announcing another 411,000 barrels/day production increase over the weekend, prices continued to rally — up approximately $2.50 intraday.

OPEC+ Extends Production Hike for Third Time in 2025

At its weekend meeting, the OPEC+ alliance confirmed a widely expected decision to extend its output increase by 411,000 barrels per day. While some nations had reportedly proposed larger production hikes, the agreed quota reflects a balanced approach to managing global supply.

Market Sentiment Driven by Low Inventory and Seasonal Demand

Oil prices are being buoyed by:

• Tighter-than-expected US inventories
• Robust summer demand projections
• Strong macro fundamentals

These factors are counteracting the impact of geopolitical developments and bearish news flow.

Tariffs, Trade Tensions Take a Back Seat

Despite US President Donald Trump’s plan to double tariffs on Steel and Aluminium, and the re-emergence of trade friction with China, oil markets remain resilient. The “buy the rumor, sell the news” dynamic appears to be in full play, with investors betting on short-term demand over long-term disruption.

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