OPEC+ Shift Sends WTI Crude Prices Plummeting by 8.15% on August 2

WTI (USOIL) crude oil prices plummeted by 8.15% on August 2, closing at $78.932 as of 18:15 ET. This significant drop is attributed to a shift in OPEC+ production policy and a weakening demand outlook from major global consumers.

The decision by the alliance to accelerate the phase-out of voluntary production cuts earlier than expected has disrupted the supply-demand balance for the second half of the year, leading to expectations of a substantial surplus in global inventories.

Disappointing economic indicators from China and the United States have intensified concerns about demand destruction. Manufacturing Purchasing Managers' Index (PMI) data from both regions recently dropped below the expansionary threshold, signaling a broader slowdown in industrial activity and transportation fuel consumption.