NEW YORK: Oil prices rose by more than $2 on Monday, despite producer group OPEC+ sticking with output hike plans, as wildfires in central Canada threatened supply and President Donald Trump’s new tariff threats weighed on the US dollar.
Brent crude futures climbed by $2.29, or 3.65%, to $65.06 a barrel by 1:05 p.m. EDT (1705 GMT). US West Texas Intermediate crude was up $2.32, or 3.82%, at $63.11. In Canada, wildfires in the province of Alberta prompted the temporary shutdown of some oil and gas production, reducing supply.
“The wildfires in Alberta are now starting to seep in,” said John Kilduff, partner at Again Capital in New York. “We are going to lose some barrels.” Also supporting prices, the US dollar slipped across the board on Monday on worries that President Donald Trump’s fresh tariff threats might hurt growth and stoke inflation.
A weaker US currency makes dollar-priced commodities like oil less expensive for buyers using other currencies. Prices were also supported by the increased geopolitical risk premium after Ukrainian drone strikes against Russia over the weekend, said Rystad Energy’s Jorge Leon.
The Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, decided on Saturday to raise output by 411,000 barrels per day (bpd) in July, the third consecutive monthly increase of that amount, as it looks to wrestle back market share and punish members that have produced more than their quotas. Sources familiar with OPEC+ talks said on Friday that the group could discuss an even larger increase.