Oil prices edge lower after OPEC+ agrees to boost output targets
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SINGAPORE — Oil prices inched lower on Monday after OPEC+ agreed to further increase its output targets beginning in August. The downward pressure on prices was reinforced as crude exports from key producers via the Strait of Hormuz began recovering, a development that could potentially add to global supplies.
Brent crude futures slid 24 cents, or 0.33%, to $71.88 a barrel by 0010 GMT. This early-week decline came after the global benchmark had settled 0.45% higher during the previous Friday’s session.
Meanwhile, U.S. West Texas Intermediate (WTI) crude traded down 11 cents, or 0.16%, to $68.58 a barrel. There was no official settlement for WTI on Friday because U.S. markets were closed ahead of the Independence Day holiday.
The decision by the Organization of the Petroleum Exporting Countries and its allies to raise production targets comes alongside improving supply conditions in the Middle East. As shipments through the critical Strait of Hormuz chokepoint stabilize, market participants are keeping a close eye on the potential for increased global availability in the coming weeks.
