Crude oil prices slipped below $70 per barrel on Friday, hit by weaker-than-expected U.S. employment data and fears of a potential OPEC+ production hike. Brent fell to $69.79, while WTI dropped to $67.54, extending a late-week downturn after trading above $70 for most of the week.
Market Sentiment Shaken by U.S. Jobs Data, OPEC+ Rumors
Investor optimism faded following a disappointing U.S. jobs report that triggered a broader market sell-off. Stock indices, which had reached record highs earlier in the week, also declined. Oil traders grew cautious amid rumors that OPEC+ may raise production by as much as 548,000 barrels per day. The proposal comes as eight member nations seek to unwind voluntary supply cuts.
Geopolitical Tensions Add to Volatility
- U.S. Targets Chinese Oil Terminals: The State Department imposed sanctions on 20 entities, including China’s Zhoushan Jinrun port, for allegedly trading in Iranian oil. It marks the fourth Chinese port directly sanctioned under U.S. efforts to curb Iranian crude exports.
- India Halts Russian Crude Imports: Indian state-owned refiners have suspended Russian oil purchases. The move follows narrowing discounts—now just $1 per barrel below Dubai—and threats of 25% tariffs from Donald Trump if India maintains ties with Moscow.
- Chevron Gets Venezuela Greenlight: The Trump administration has reportedly granted Chevron a sanctions waiver to resume operations in Venezuela, under strict conditions that no funds reach the Venezuelan government.
Supply and Infrastructure News from Key Markets
- Saudi Arabia’s Budget Deficit Narrows: Higher crude production helped Saudi Arabia shrink its Q2 2025 budget deficit to $9.2 billion—a 40% improvement from the previous quarter. Public debt now stands at $370 billion.
- Freeport LNG Suffers Disruptions: A power outage at Freeport LNG has halved operations, removing 1.1 billion cubic feet per day of feedgas demand. The terminal experienced seven outage incidents in July alone.
- Shell’s $40 Billion LNG Canada Faces Technical Setbacks: Technical faults at the Kitimat facility’s gas turbine and refrigerant unit have reduced capacity, forcing at least one LNG tanker to divert.
- Europe Eyes Joint LNG Procurement: The European Commission is weighing a collective LNG purchase mechanism to increase imports from the U.S. and meet its $250 billion energy commitment, aiming to boost leverage in contract negotiations.
Industry Restructuring, Penalties, and Exploration Updates
- China’s Polysilicon Makers Plan $7B Overhaul: In a bid to stabilize the market, leading Chinese producers are discussing a plan to shut down one-third of domestic capacity, about 1 million tonnes annually.
- New Zealand Lifts Offshore Drilling Ban: The government reversed a 2018 moratorium on offshore exploration. Domestic crude output had dropped to 17,000 barrels per day due to declining investments.
- Egypt Expands Oil and Gas Ambitions: Egypt’s EGPC signed a joint appraisal deal with ENI and BP for the El Temsah offshore block. It also expects flows from the new Energos Eskimo FSRU to begin next week after importing a record 1 million tonnes of LNG in June.
- Phillips 66 Fined $800M for Trade Secret Theft: A California court ordered Phillips 66 to pay $800 million to Propel Fuels for misusing proprietary information during failed acquisition talks.
Commodity Market Shifts
- Copper Prices Plunge on Trump Exemptions: U.S. copper futures fell 22% after the administration exempted copper ores, cathodes, and concentrates from the 50% import tariff. COMEX futures dipped to $9,650 per metric ton.