Crude slumped as OPEC+ lifted output; demand concerns eclipse geopolitical risks

Crude oil prices extended losses on Tuesday, pressured by a larger-than-expected supply boost from OPEC+ and persistent worries over global demand, which outweighed fresh geopolitical tensions between Washington and New Delhi.

Brent fell $1.12, or 1.6%, to settle at $67.64 per barrel. 

WTI dropped $1.13, or 1.7%, to $65.16 — the lowest finish for both benchmarks in five weeks.

The sell-off accelerated after OPEC+ announced on Sunday a 547,000 bpd output increase for September, effectively fast-tracking the unwinding of its most recent voluntary cuts. 

Demand-side sentiment remained fragile. The latest US macroeconomic data showed services sector activity stagnated in July, with flat new orders and a dip in employment, even as input costs surged — raising concerns over a potential demand slowdown in the world's largest oil consumer.

Geopolitical risks briefly surfaced but failed to offer lasting support. US President Trump issued a renewed threat to hike tariffs on Indian goods within 24 hours, citing India’s sustained intake of discounted Russian crude. India averaged 1.75 million bpd in seaborne Russian imports during H1 2025 — a 1% year-on-year increase.

Written: Aiman Haikal