Crude retreats over 1% as OPEC+ announces surprise output hike

Crude oil prices declined over 1% on Monday after OPEC+ unexpectedly announced a significant production increase of 548,000 barrels per day for August, stoking concerns of a potential supply glut. US West Texas Intermediate crude fell to $66.54, down 0.69%, as markets reacted sharply to the cartel's decision. Sentiment was further dampened by renewed trade policy uncertainty, with President Trump indicating that several trade deals were nearing completion and warning of elevated tariff rates to be enforced from August 1. The combination of heightened supply projections and potential demand-side pressures from trade disruptions weighed heavily on prices. In contrast, domestic futures displayed resilience, with MCX crude rising 0.46% to ₹5716 per barrel, diverging from the broader global trend.

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