Oil Prices Ease as OPEC+ Agrees to Boost Output from August

Oil prices experienced a slight decline on Monday following an agreement by OPEC+ to further increase production targets starting in August. This move comes as exports from major oil-producing nations continue to recover, potentially adding to global supply. Brent crude futures dropped by 24 cents, or 0.33 percent, settling at $71.88 a barrel, while US West Texas Intermediate crude remained steady at $68.58 a barrel. Both benchmarks saw minimal change over the past week, having generally trended downward in recent weeks amid close monitoring of US-Iran talks concerning shipping and the recovery of oil exports from Gulf states. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, agreed on Sunday to boost output targets by 188,000 barrels per day from August. This follows similar increases implemented in June and July. In June, OPEC oil output surged by 3.3 million barrels per day compared to the previous month, reaching 19.43 million barrels per day. This recovery marks a significant rebound from its lowest level in over two decades. Concurrently, oil exports from Gulf states saw a substantial increase of more than three million barrels per day in June from May, surpassing ten million barrels per day, although volumes still remain 40 percent below pre-war levels. Russian oil shipments from its western ports also reached a record high in June and are expected to maintain that level in July, partly due to damage sustained by Russian refineries from Ukrainian drone attacks, which has prompted Moscow to increase crude exports.