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Oil prices are affected by rising OPEC+ supplies and tariff uncertainty

A poll on Thursday showed that analysts are maintaining their oil price predictions for 2025 largely unchanged, due to the rising OPEC+ production and continued uncertainty over U.S. Tariffs.

Analysts said that the continued threat of disruption to supply due to war in Ukraine and Middle East provides some support.

In the last two week's poll, 37 economists and analysts were surveyed. They predicted that Brent crude will average $67.84 a barrel in 2025 and that U.S. oil would hover around $64.61, which is in line with estimates from last month of $67.86 a barrel and $64.51.

The poll showed that Brent prices are likely to fall next year and reach $62,98 in the second half of 2026.

According to LSEG, Brent and WTI prices have averaged around $70.60 each and $67.46 respectively so far this year.

Investors are focused on the ongoing U.S. tariff negotiations and August 1 deadline. Markets anticipate that new tariffs by the Trump administration could slow global growth, and therefore oil demand.

The uncertainty surrounding President Trump's plans to impose tariffs on goods and services affects the markets as well as demand. The OPEC+ alliance is also a source of increased supply. The mismatch between demand and supply remains," said Thomas Wybierek at NORD/LB.

In April, eight members of OPEC+ (which includes Russia) began increasing production.

Sources say that the eight countries are expected to hold a separate gathering on August 3, and will likely agree to an additional 548,000 bpd for September.

Analysts polled by predict that global oil demand will grow by over 797,000 barrels per day (bpd) in 2025. This is compared to an estimate of 700,000 by the International Energy Agency.

Most analysts have noted, however, that oil demand may weaken in 2025's fourth quarter due to a slowdown in the economy and seasonal factors. At the same time, OPEC+ will be expected to pump even more oil into the market. This could lead to an oversupply.

Moutaz Alaghlibi is a senior energy economist with ABN AMRO. He said, "We expect to see prices decrease in the second halves of 2025 due to both a slower growth in demand and an increase in supply."

Participants to the poll also noted that the geopolitical premium associated with the Russia-Ukraine War and Middle East tensions will likely persist until 2025.

Cyrus De La Rubia is the chief economist of Hamburg Commercial Bank. He said that geopolitical factors would continue to support the oil price on the margin and help to keep Brent at higher $60s than lower $60s by 2026.

(source: Reuters)