Oil prices dip on US inventory build, OPEC+ output hike expectations
- July 2, 2025
- Category: News

Investing.com-- Oil prices fell in Asian trade on Thursday, reversing sharp gains from the prior session after data showing an unexpected build in U.S. inventories raised some concerns over sluggish fuel demand.
Focus was also squarely on a meeting of the Organization of Petroleum Exporting Countries and allies (OPEC+), which is set to increase output again during an upcoming weekend meeting.
Brent oil futures for September fell 0.6% to $68.68 a barrel, while West Texas Intermediate crude futures fell 0.7% to $65.58 a barrel by 21:19 ET (01:19 GMT).
Both contracts soared between 2.5% and 3% on Wednesday after Iran’s suspension of cooperation with the United Nations’ nuclear watchdog ramped up fears of a reescalation in hostilities in the Middle East.
But the gains did not hold, especially as markets remained on edge over increasing supplies elsewhere, while concerns over slowing demand also weighed. Focus on Thursday is on a barrage of key U.S. labor readings for more cues on the world’s largest fuel consumer.
US inventories unexpectedly grow; nonfarm payrolls awaited
U.S. oil inventories grew by 3.85 million barrels (mb) in the week to June 27, government data showed on Wednesday, contrasting expectations for a draw of 3.5 mb and reversing course from an outsized 5.84 mb draw in the prior week.
The print was accompanied by a vastly outsized 4.19 mb build in gasoline inventories, which raised questions about just how strong fuel demand will be this summer season.
Focus was now on key nonfarm payrolls data for June, due later on Thursday. The print is expected to show further cooling in the labor market, pointing to some economic cracks in the world’s biggest fuel consumer.
Oil markets are also on edge over President Donald Trump’s trade tariffs, with Washington having signed only a few deals ahead of a July 9 deadline.
OPEC+ expected to raise production again in July meeting
The OPEC+ will meet over the weekend , with recent reports showing that the cartel plans to boost production by 411,000 barrels per day (bpd) in August.
While the hike is in a similar margin as those seen in July, June, and May, it still highlights the cartel’s plans to steadily unwind two years of sharp production cuts.
This unwinding in part is to offset the economic impact of prolonged weakness in oil prices, as well as to punish overproduction within the OPEC’s ranks.
Increased OPEC+ production also comes amid calls by Trump for the cartel to increase production and keep prices low. Trump has also urged U.S. oil producers to ramp up output.