(KMAland) — Saying the first six months of the year have been active when it comes to oil prices may be an understatement.
It should come as no surprise that trade has been one of the biggest pressures moving oil prices, but not the only one. Patrick DeHaan of Gasbuddy.com says the Trump Administration’s change in relationship with OPEC allowed for more oil production, which he called a game-changer.
“Without that, oil prices probably would not be anywhere near where they are today at about $65 a barrel. OPEC cut oil production back in 2023, and so to see OPEC raising production this year certainly has been surprising and a large part of why gasoline prices are lower.”
When it comes to the second half of the year, DeHaan says oil prices could struggle.
“As OPEC increased production, that will start to lead to more supply at the time of year when demand is starting to decline. So, hopefully, the second half of the year will be a little bit quieter than the first half in terms of geopolitical tensions. We’ll still keep an eye on Russia, but for now, Russian oil output does continue at brisk levels, so I think that all is going to lead to a second half of 2025, at least for oil markets, maybe a little bit more bearish than the first half of the year.”
As of Tuesday morning, West Texas Crude was trading slightly lower at $67 per barrel, while Brent Crude was also lower, trading near $69 per barrel.