2026-07-06T05:19:05+00:00
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Shafaq News
Oil prices
inched lower on Monday after OPEC+ agreed to further increase its output
targets from August while exports from key producers via the Strait of Hormuz
are recovering, potentially adding to global supplies.
Brent crude
futures fell 34 cents, or 0.47%, to $71.78 a barrel by 0408 GMT after settling
0.45% higher on Friday. U.S. West Texas Intermediate crude was at $68.49 a
barrel, down 20 cents, or 0.29%. There was no settlement for WTI on Friday as
U.S. markets were closed ahead of the Independence Day holiday on Saturday.
Both contracts
were little changed last week, after mostly falling over the past few weeks,
as investors kept a close eye on talks between the United States and Iran over
the fate of shipping through the Strait of Hormuz while keeping tabs on the
recovery in Gulf oil exports.
“Coming
off the U.S. long weekend, traders are sitting tight and waiting to see whether
U.S.-Iran relations will be cordial or volatile this week,” said Tim
Waterer, chief market analyst at KCM Trade.
The
Organization of the Petroleum Exporting Countries and their allies including
Russia agreed on Sunday to further increase output targets by 188,000 barrels
per day from August, on top of similar increases for June and July.
However, the
increase has remained largely on paper because of the U.S.-Israeli war with Iran, which closed the Strait of Hormuz to tanker
traffic for key OPEC producers, including Saudi Arabia, Kuwait and Iraq,
capping their output.
“The
number was largely in line with expectation,” IG market analyst Tony
Sycamore said.
“With UAE
leaving and when quotas are probably still not being met due to production
still ramping up after the conflict – I’m not sure they mean much at the moment.”
The United Arab
Emirates quit OPEC as of May 1.
Gulf members
have begun reviving supplies shut during the Iran war and are increasing
exports.
OPEC oil output
in June rose by 3.3 million barrels per day month-on-month to 19.43 million
bpd, a Reuters survey found, recovering from its lowest in more
than two decades.
Gulf oil
exports in June jumped more than 3 million barrels from May to exceed 10
million barrels per day, although the volume remained 40% below pre-war levels,
data showed.
In addition,
oil shipments from Russia’s western ports hit a record high in June and are
expected to maintain that level in July as its refineries have been damaged in
drone attacks by Ukraine that have forced Moscow to boost crude exports,
industry sources said.
(REUTERS)
Only the
headline is edited by Shafaq News.