Higher production targets and recovering exports eased concerns over global oil supply.
Oil prices edged lower on Monday after OPEC+ agreed to increase production targets again from August. Traders also watched rising exports from the Gulf and ongoing uncertainty around U.S.-Iran relations, both of which could shape supply in the weeks ahead.
KEY DETAILS
Brent crude fell 34 cents, or 0.47%, to $71.78 a barrel, while U.S. West Texas Intermediate (WTI) dropped 20 cents, or 0.29%, to $68.49. WTI did not settle on Friday because U.S. markets were closed ahead of the Independence Day holiday.
On Sunday, OPEC+ approved an additional 188,000 barrels per day increase in output targets for August, matching the production hikes announced for June and July.
Analysts said the decision was largely expected. However, actual production has been limited after the recent U.S.-Israeli conflict with Iran disrupted tanker traffic through the Strait of Hormuz. As exports recover, Gulf producers are gradually restoring supplies.
A Reuters survey found OPEC's June oil production climbed 3.3 million barrels per day from May to 19.43 million bpd. Gulf exports also increased by more than 3 million barrels per day, topping 10 million bpd, though they remain about 40% below pre-war levels.
Meanwhile, crude shipments from Russia's western ports reached a record high in June and are expected to stay elevated in July as refinery damage from Ukrainian drone attacks continues to support exports.
MARKET REACTION
Energy markets remained cautious, while traders continued monitoring geopolitical developments that could influence oil prices, inflation expectations, and energy-related stocks.
For traders, rising global oil supplies could weigh on crude prices, but geopolitical risks around the Middle East remain a major source of volatility.
Markets will now focus on the pace of Gulf export recovery, Russia's crude shipments, and any developments in U.S.-Iran relations that could quickly shift the outlook for global oil supplies.
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Source: Reuters
Time: 11:30 AM EEST
