Oil prices fall after OPEC+ agrees to increase output

Oil prices edged lower on Monday after OPEC+ agreed to increase oil production from August, while oil exports through the Strait of Hormuz continued to recover.

Brent crude fell by 24 cents to $71.88 per barrel, while US West Texas Intermediate (WTI) dropped 11 cents to $68.58 per barrel.

Oil prices changed very little last week as investors watched developments in talks between the United States and Iran and monitored the recovery of oil exports from the Gulf region.

On Sunday, OPEC+, including Russia, agreed to raise its production target by 188,000 barrels per day from August. Similar production increases had already been announced for June and July.

Market analyst Tony Sycamore said the latest production increase was mostly expected. He added that the higher targets may have little immediate impact because some producers are still recovering from recent regional conflict.

Oil production by OPEC members increased in June to 19.43 million barrels per day, according to a Reuters survey. This marked a recovery from the lowest production level seen in more than 20 years.

Oil exports from Gulf countries also increased in June, rising above 10 million barrels per day, although they remained below pre-war levels.

Meanwhile, Russia’s oil exports from its western ports reached a record high in June. Industry sources said exports are expected to remain strong in July after drone attacks damaged several Russian oil refineries, leading the country to export more crude oil.