OPEC+ boosts oil output, but geopolitical tensions could sway prices
OPEC and its allies (aka OPEC+) just announced they'll pump out 547,000 more barrels of oil per day in September.
This is part of their plan to wind down the supply cuts they agreed upon in December 2024.
Why does this matter?
More oil on the market usually helps keep fuel prices in check, which can mean cheaper commutes and lower costs for businesses.
Right after the news, global oil prices dipped a bit—Brent crude fell to $69.41 per barrel, and WTI slid to $67.14.
What to watch out for
OPEC+ says steady demand and low reserves pushed them to boost output now, especially with summer energy use peaking.
But there's a twist: US sanctions on India's Russian oil imports could remove even more barrels from global supply, possibly making markets tight again despite this increase.
So while prices might ease for now, things could change fast if geopolitics heat up.