Oil prices rising amid geopolitical risks despite OPEC+ supply growth

On Monday, the oil price is rising on the back of mounting geopolitical and trade risks that intensified over the past weekend. Meanwhile, the announced increase in OPEC+ crude production by 411 thousand barrels per day matched average expectations and fell short of the most pessimistic forecasts, keeping prices from plunging. 

According to Bloomberg, the cost of Brent crude with August delivery rose to $65 a barrel after last week's losses of 2.2%. The price of West Texas Intermediate exceeded $62. 

The rise in oil prices on Monday followed two turbulent months during which the market saw pronounced volatility as a result of the US tariff standoff with other major economies. Oil prices have fallen nearly 15% this year, pressured by trade tensions and OPEC+ abandoning its previous supply-cutting strategy.

Robert Rennie at Westpac Banking said Brent prices are likely to hold in the middle of the $60–65 range until there is a clearer picture of how fast OPEC's actual production is rising. The pace of supply build-up by the group could slow in the coming months, he said.