Oil Market: OPEC+ & Geopolitics Impact Prices
- Oil prices remained stable despite OPEC+ agreeing to increase crude oil supply by 411,000 barrels per day starting in July.
- Tensions between Russia and Ukraine are escalating,with Ukraine reportedly launching drone attacks on Russian airfields.
- Baker Hughes data indicates a fifth consecutive week of declines, with the U.S.
Oil prices hold steady, even as OPEC+ plans another supply increase of 411,000 barrels per day starting in July, adding further supply to the market. Geopolitical tensions also play a role, with escalating conflict between Russia and Ukraine and proposed sanctions impacting global markets. Former President Trump’s announcement to double tariffs on steel and aluminum to 50% could further influence the market. The impact of these moves and the developments in Ukraine’s spring grain planting are under the spotlight. news Directory 3 is closely monitoring these critical factors and their potential to shift the landscape. Discover what’s next for the commodities market.
Commodities Markets: Oil Prices Steady, Trump Eyes Steel Tariffs
Updated June 2, 2025
Oil prices remained stable despite OPEC+ agreeing to increase crude oil supply by 411,000 barrels per day starting in July. This increase mirrors similar hikes in May and June. The group is on track to restore over 60% of its planned 2.2 million barrels per day supply increase by the end of July.
The oil market also faces geopolitical pressures. Tensions between Russia and Ukraine are escalating,with Ukraine reportedly launching drone attacks on Russian airfields. Some U.S.senators are advocating for stricter sanctions against Russia, including a proposal to impose 500% tariffs on imports from countries purchasing Russian oil. Senators Lindsey Graham, R-S.C., and Richard Blumenthal, D-Conn., aim to implement these sanctions by the G-7 summit in mid-June.
Meanwhile,U.S. drilling activity is slowing down amid lower oil prices. Baker Hughes data indicates a fifth consecutive week of declines, with the U.S. oil rig count falling by four to 461.
Former President Trump announced plans to double tariffs on steel and aluminum to 50%, effective June 4. He made the announcement while visiting a U.S. Steel Corp. plant. The U.S. relies heavily on Canada for aluminum and steel imports.
Trump said the tariffs are intended to boost domestic production and create jobs in the U.S.Though,data from 2024 shows that U.S. steel output was 1% lower than in 2017, before the initial tariffs were imposed. Aluminum production also declined by nearly 10% during the same period.
In agriculture, Ukraine’s Agriculture Ministry reported that spring grain planting reached 5.5 million hectares as of May 30, aligning with the previous year’s figures. This represents 97% of the projected area. Sunflower plantings increased by 15% year-on-year to 2.2 million hectares, while corn plantings decreased by 14% to 217,100 hectares.
In France, 70% of the soft wheat crop is rated in good-to-excellent condition as of May 26, according to the agriculture Ministry. Corn plantings are 97% complete,surpassing last year’s 84%.
What’s next
The commodities market will be closely watching the impact of OPEC+’s supply increase, potential sanctions against Russia, and the effects of increased tariffs on steel and aluminum. The progress of Ukraine’s planting season and the condition of crops in France will also be key factors.