WTI Holds Steady at $64.50 as Middle East Tensions Ease and OPEC+ Eyes Output Hike

WTI Stabilizes at $64.50 as Middle East Risks Ease and OPEC+ Plans Output Hike

Israel-Iran Ceasefire Lowers Geopolitical Risk Premium

West Texas Intermediate (WTI) crude remains steady around $64.50 on Monday in Asia, as investors digest news of a ceasefire between Israel and Iran, which has cooled fears of disruptions to oil flows from the Middle East.

“The market has taken out most of the geopolitical risk premium built into the price,” said Tony Sycamore, analyst at IG Markets.

This ceasefire has reassured traders and led to reduced volatility in oil pricing for now.

OPEC+ to Raise Output Again in August

The Organization of the Petroleum Exporting Countries and its allies (OPEC+) plans to increase oil production by another 411,000 barrels per day in August, building on similar hikes made in May, June, and July.

This would mark the fifth consecutive month of output increases as the group gradually ends its prior production cuts implemented in response to global demand fluctuations.

The upcoming OPEC+ meeting on July 6 will likely confirm the new supply boost.

Short-Term Outlook: Flat with Slight Downward Pressure

With geopolitical tensions easing and OPEC+ increasing supply, the short-term outlook for crude suggests that WTI may face modest downward pressure despite relatively stable demand. However, if economic data from major economies, especially the US and China, signal strong activity, prices may stabilize further or rebound.

Internal Linking Suggestions:

• OPEC+ Strategy Explained: What’s Next for Global Oil Supply?
• Geopolitical Risk and Crude Oil: How Wars Impact Prices
• Canada’s Oil Exports and USD/CAD Reaction to WTI Prices