Oil prices dropped sharply on Friday after reports confirmed that OPEC+ plans to implement a larger-than-expected output hike starting in August. The benchmark Brent contract fell from its session high of $67.17 to as low as $66.37, marking the lowest price of the week in a matter of minutes.
The drop follows news that OPEC+ will increase production by around 2.5 million barrels per day, with the United Arab Emirates contributing a significant share of this additional supply. The move comes after months of tighter controls and reduced output aimed at supporting prices amid global uncertainties.
This shift in strategy reflects growing pressure from major importers, including the United States and China, to ease supply constraints and stabilize energy markets. By increasing output, OPEC+ hopes to cool down prices and respond to global demand more flexibly.
Impact on the population
For everyday consumers, this could mean lower fuel prices at gas stations and reduced transportation costs in the coming weeks. Cheaper oil may also ease inflation, particularly in energy-dependent sectors like logistics, agriculture, and manufacturing.
However, the move may hurt oil-exporting countries that rely on higher prices to balance their budgets. It could also create uncertainty in energy markets, especially if global demand weakens or geopolitical risks return.
Still, the immediate effect for most people is likely positive: cheaper energy, more breathing room in household budgets, and potential downward pressure on general inflation.
