Aug 02, 2025

Oil prices dropped nearly $2 per barrel on Friday as markets reacted to reports of a possible production increase by OPEC+ and disappointing U.S. job data. Brent crude closed at $69.67, down 2.83%, while WTI settled at $67.33, a drop of 2.79%.

Despite Friday’s losses, oil posted weekly gains—Brent up nearly 6% and WTI rising 6.29%. Sources indicate OPEC+ may agree to raise output by 548,000 barrels per day in September, though final volumes are still under discussion.

The U.S. added just 73,000 jobs in July, below expectations, with unemployment rising to 4.2%. Analysts blamed mixed policy signals from the Federal Reserve and renewed trade tensions triggered by tariffs imposed by President Trump on countries failing to reach trade deals.

Meanwhile, Trump’s threats of 100% secondary sanctions on buyers of Russian crude, including China and India, added geopolitical risk to oil markets. JP Morgan estimates up to 2.75 million bpd of Russian exports could be impacted.