Oil prices declined by more than 1% on Monday 6 July following the decision by the Organisation of the Petroleum Exporting Countries (Opec) and its allies, known as Opec+, to raise production targets from August.
By 07:56 GMT, Brent crude futures had dropped by $1.02, or 1.41%, to $71.10 a barrel (bbl) after ending slightly higher on Friday, reported Reuters.
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Meanwhile, US West Texas Intermediate (WTI) crude fell by $0.80, or 1.16%, to $67.89/bbl. There was no official settlement price for WTI on Friday due to the US holiday.
Both Brent and WTI have shown limited change over the past week following several weeks of declines as investors monitored developments around supply and geopolitical tensions.
Seven Opec+ countries – Algeria, Iraq, Kuwait, Kazakhstan, Oman, Russia and Saudi Arabia – convened virtually on 5 July to assess market conditions.
They reaffirmed their commitment to supporting oil market stability, opting for an adjustment of 188,000 barrels per day as part of additional voluntary changes announced in April 2023.
The group confirmed its intention to monitor conformity with agreed targets, including full compensation for any overproduced volume since January 2024.
Monthly meetings will continue, with the next scheduled for 2 August 2026, to review market conditions, production targets and compensation for prior output discrepancies.
Opec+ countries have stated that these measures are intended to support market stability, with monitoring by the Joint Ministerial Monitoring Committee.
In June, Gulf oil exports increased by more than three million barrels (mbbl) from the previous month, exceeding 10mbbl per day (mbbl/d), yet remaining 40% below levels seen before the recent conflict.
The increase in output targets comes after previous phases remained largely theoretical when the Strait of Hormuz was closed to tanker traffic, limiting production from Saudi Arabia, Kuwait and Iraq.
The Abu Dhabi National Oil Company was also reported to have sold around 16mbbl of crude at wider discounts through a recent tender, highlighting a rise in spot supply.
Additionally, Russian oil shipments from western ports reached a record level in June and are projected to remain high in July.
