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Oil prices continued to fall on Monday after OPEC+ confirmed it would proceed with a significant production hike in September, adding pressure to a market already rattled by concerns over a slowdown in the US economy, the world’s largest consumer of crude.

Brent crude slipped by 40 cents, or 0.57 per cent, to $69.27 a barrel by 6:45 AM, while US West Texas Intermediate (WTI) eased 37 cents, or 0.55 per cent, to $66.96. Both benchmarks had already shed about $2 per barrel in the previous session, reported Reuters.

OPEC+ Pushes Ahead with Supply Increase

The Organisation of the Petroleum Exporting Countries and its allies (OPEC+) announced on Sunday that it will raise production by 547,000 barrels per day (bpd) in September. This move forms part of a broader strategy to recover market share, reversing earlier deep production cuts sooner than expected.

The latest decision includes an additional output boost for the United Arab Emirates, bringing the overall increase to roughly 2.5 million bpd, equivalent to about 2.4 per cent of global demand.

Goldman Sachs analysts forecast that only around 1.7 million bpd of the pledged output from eight key OPEC+ members will actually hit the market, citing offsetting reductions by other producers who previously exceeded quotas. “While OPEC+ policy remains flexible and the geopolitical outlook uncertain, we assume that OPEC+ keeps required production unchanged after September,” they noted, adding that expanding non-OPEC supply will leave limited room for further increases.

Geopolitical Risks and US Tariff Concerns Weigh on Market

Despite the production hike, market jitters persist due to geopolitical tensions and sanctions risks. Investors are closely watching the US stance on Iran and Russia, with President Donald Trump threatening 100 per cent secondary tariffs on buyers of Russian crude to ramp up pressure on Moscow over its war in Ukraine.

Citing trade sources, the news agency reported that at least two Russian oil shipments originally headed for India were diverted after Washington imposed new sanctions, although Indian officials told Reuters the country would continue importing Russian crude regardless.

Adding to the bearish sentiment, weak US job growth data released on Friday stoked fears of softer fuel demand. Meanwhile, US Trade Representative Jamieson Greer confirmed that tariffs imposed on multiple countries last week are unlikely to be rolled back soon, keeping the outlook for global economic growth and energy consumption under strain.