Analyst: OPEC+ cautious stance may limit downside risk for oil prices

Market analyst Frank Walbaum of Naga wrote that OPEC+ will start increasing production by 547,000 barrels per day in September, which is in line with market expectations. Walbaum said that while the additional supply could put pressure on prices, the wait-and-see stance of OPEC+ may limit downside risks as they are still prepared to change course if necessary, adding some uncertainty. Walbaum noted that the weaker than expected US employment report also sparked concerns about the economy, which is a negative factor for oil. On the other hand, with President Trump's threat of additional tariffs looming, potential disruptions in Russian oil transportation could support the market and push prices higher.