Oil prices edged lower on Monday after OPEC+ oil production members agreed to raise output again next month. The decision added pressure to global crude markets as traders continued to monitor supply levels and upcoming diplomatic talks between the United States and Iran.
Brent crude futures fell by 24 cents, or 0.33%, to $71.88 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude dropped 11 cents to $68.58 per barrel during early trading.
Oil prices showed only limited movement last week after sharp declines at the end of the previous month. Investors are now closely watching negotiations between the United States and Iran, which are expected to take place in Pakistan next week. The discussions will cover several issues, including shipping through the Strait of Hormuz, frozen Iranian assets, and Tehran’s nuclear program. The outcome could influence global energy markets in the coming weeks.
On Sunday, OPEC+ oil production members, including Russia, agreed to increase crude output by 188,000 barrels per day in August. The move follows similar production increases announced for June and July as the alliance gradually restores supply to the market.
Tony Sycamore, a market analyst at IG, said the increase matched market expectations. However, he noted that the decision may have only a limited effect because the United Arab Emirates has already expanded production and several OPEC+ members have not yet reached their assigned output targets.
Oil-producing Gulf countries have also resumed production that was temporarily reduced during the recent Iran conflict. As a result, OPEC’s crude production increased by 3.3 million barrels per day in June, reaching 19.43 million barrels daily after previously falling to its lowest level in more than two decades.
Export data also showed strong growth. Gulf oil exports rose by more than 3 million barrels per day in June compared with May. Total exports climbed above 10 million barrels per day. Despite the increase, export volumes remain about 40% below levels recorded before the conflict.
Analysts expect OPEC+ oil production decisions and geopolitical developments to remain the main drivers of oil prices throughout the coming months.
