Oil prices eased on Monday, with Brent crude slipping below $72 a barrel and West Texas Intermediate trading near $68, as improved tanker movement through the Strait of Hormuz and OPEC+’s decision to increase production added to global supply concerns.
The producer alliance agreed on Sunday to raise output targets by 188,000 barrels per day from August, extending similar hikes made in June and July. The increase follows earlier combined quota rises of nearly 800,000 barrels per day between April and July by key members including Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman.
However, much of the additional supply has yet to fully reach markets due to earlier disruptions in the Strait of Hormuz linked to the U.S.-Israeli conflict with Iran.
Brent crude has fallen about 30% in the second quarter, recently trading near pre-conflict levels as shipping through the Strait gradually resumed following a U.S.-Iran interim peace deal.
OPEC data shows production rose in June after export recovery efforts, though output remains below pre-conflict levels.
The market is also pressured by weaker Chinese demand, higher non-Middle East supply and strategic reserve releases. Analysts expect further downside, with some forecasts projecting Brent near $57–60 by next year.
OPEC+ members, including Iraq and Saudi Arabia, will meet again on August 2, as Iraq pushes for higher quotas and remaining 2023 production cuts continue to be gradually unwound.
