U.S. crude oil futures settle at $63.88/bbl, down 47 cents, 0.73 pct

U.S. crude oil futures settle at $63.88/bbl, down 47 cents, 0.73 pct

U.S. crude oil futures settled at $63.88 per barrel on July 2, 2025, down 47 cents, or 0.73 percent, marking the fourth consecutive day of losses. The decline was driven by bearish fundamentals, including the anticipated output increase by OPEC+ and concerns over global demand.

OPEC+ agreed over the weekend to boost oil production by 547,000 barrels per day (bbl/day) for September, ending its recent production cut earlier than expected. This decision sets the market on a downward trajectory, potentially pushing prices to new 52-week lows, according to Peter Cardillo of Spartan Capital. The uncertainty surrounding tariffs, combined with the OPEC+ decision, is likely to renew a bearish trend [1].

Both WTI and Brent benchmarks fell for the fourth straight day. The front-month Nymex crude (CL1:COM) for September delivery finished -1.7% to $65.16/bbl, its lowest close since July 25, while front-month Brent crude (CO1:COM) for October delivery ended -1.6% to $67.64/bbl, its lowest settlement value since July 1 [1].

Geopolitical risks also played a role in the market's sentiment. President Trump's threats of increased tariffs against buyers of Russian oil, including China and India, added to the market's concerns. The Financial Times reported that Trump is considering blacklisting Russia's "shadow fleet" of oil tankers if Vladimir Putin does not agree to a ceasefire in Ukraine by August 8 [1].

Meanwhile, U.S. special envoy Steve Witkoff is expected to travel to Russia for meetings this week with Russian officials, ahead of Trump's deadline for Russia to reach a truce in the war. These geopolitical developments have contributed to the ongoing uncertainty in the oil market.

Despite the downward pressure, oil prices have remained up over 3% for the week due to Trump's threat of 100% secondary tariffs on Russian oil buyers, heightening fears of supply disruptions [3].

References:
[1] https://seekingalpha.com/news/4479365-oil-futures-fall-again-as-bearish-fundamentals-outweigh-geopolitical-risk-for-now
[2] https://www.investing.com/commodities/crude-oil
[3] https://www.tradingview.com/news/te_news:474738:0-oil-falls-by-3-still-set-for-weekly-gain/