08:56 AM EDT, 07/08/2025 (MT Newswires) -- Oil prices were mostly steady early on Tuesday as the market assesses the impact of higher supply after OPEC+ over the weekend decided to boost production more than expected next month.

West Texas Intermediate crude oil for August delivery was last seen down US$0.10 to US$67.83 per barrel, while September Brent crude was up US$0.03 to US$69.61.

Following three-straight monthly supply increases of 411,000 barrels per day, OPEC+ agreed to add 548,000 bpd of additional supply to the market in August as it returns 2.2-million barrels per day of voluntary supply cuts made by eight cartel members in 2023. After the August hike, a final 550,000 bpd production increase is expected in September that will complete the unwinding of the voluntary cuts to market.

While traders are looking for the market to mostly absorb the additional barrels during the high-demand summer driving season, concerns supply will be much higher than demand come September are on the rise. Global inventories have been mostly shrinking for the past two years but are likely to rise sharply in the autumn on lower seasonal demand..

"As oil demand declines seasonally after the summer, rising OPEC+ exports will hit the market. On our updated supply and demand forecasts, the surplus should rise sharply to over 2mbd in 4Q 2025 and nearly 1.9mbd in 2026, which raises downside risks to prices," HSBC Global Research noted