Oil prices slip as OPEC+ ramps up production

Global crude oil prices edged lower on Monday (July 6) after OPEC+ agreed to increase production from August and oil exports through the Strait of Hormuz continued to recover, easing concerns over global supply disruptions.

Brent crude fell 42 cents, or 0.58 per cent, to $71.70 a barrel, while US West Texas Intermediate (WTI) crude slipped 27 cents, or 0.39 per cent, to $68.42 a barrel in early trading.

The decline followed Sunday's decision by OPEC and its allies, led by Russia, to raise output by 188,000 barrels per day (bpd) in August, matching the production increases announced for June and July.

Market sentiment also improved as crude exports from key Gulf producers gradually resumed through the Strait of Hormuz after disruptions caused by the Iran-Israel conflict, reducing fears of prolonged supply shortages.

Despite the planned output increase, analysts noted that actual production remains below target due to lingering post-war disruptions and the departure of the United Arab Emirates from OPEC earlier this year.

According to a Reuters survey, OPEC's crude production rebounded sharply in June, while Gulf oil exports climbed by more than 3 million bpd from May, although shipments remain below pre-conflict levels.

Meanwhile, Russia's crude exports from its western ports reached record highs in June and are expected to remain elevated this month as refinery outages caused by Ukrainian drone attacks continue to support overseas shipments.