Crude %Oil prices are in retreat after the OPEC+ cartel announced another large production increase starting in September of this year.
Brent crude oil, the international standard, is down 1% and trading at $68.25 U.S. per barrel.
At the same time, West Texas Intermediate (WTI) crude, the American benchmark, is also down
1% and trading at $65.67 U.S. a barrel.
The slump comes after the Organization of the Petroleum Exporting Countries and its allies (%OPEC) agreed to raise their oil production by 547,000 barrels per day in September.
This is the latest in a series of output hikes that have occurred this year as OPEC+ member countries try to boost their market share.
The increased production and sliding crude prices are weighing on the stocks of oil majors such as %Chevron (CVX), %ExxonMobil (NYSE: $XOM), and %BritishPetroleum (NYSE: $BP).
At the same time, energy traders and investors are digesting the potential impacts of the latest U.S. tariffs on exports from dozens of America’s trading partners.
U.S. President Donald Trump has threatened further sanctions on Russian oil in recent days, as well as punishment for India over its purchase of Russian crude.
At least two vessels loaded with Russian oil bound for refiners in India have diverted to other destinations following U.S. threats of new sanctions and tariffs.
Despite the diversion, Indian government officials have said that the country will keep purchasing oil from Russia regardless of Trump’s threats.
