OIL slumps 2% amid OPEC+ production increase reports and Israel-Hamas ceasefire progress

Brent Crude (OIL) loses more than 2% today, as six OPEC+ sources said that OPEC+ is likely to proceed with a planned gradual oil production increase, possible since October 2024. 8 OPEC+ members plan to increase oil production by 180 000 barrels per day, in October (as a part of the OPEC+ plan of slowing production cuts by 2.2 barrels per day), while all other cuts are expected to persist to the end of 2025 year.

Also, according to Israeli Walla website informed, Hamas and Israel have made progress in negotiations on the exchange of prisoners and hostages. Fears among OPEC+ rising production may signal that oil giant conglomerate expects softer, global demand, while geopolitical risk eases in a short-term, as Iran didn't respond to Israeli strike in Syria, with Hamas and IDF talks progress.