Doha: Oil prices edged lower on Monday: after OPEC+ agreed to raise its August production target, while a rebound in exports from major producers through the Strait of Hormuz reinforced expectations of increased global supply. Brent crude futures fell 24 cents, or 0.33%, to $71.88 a barrel after settling 0.45% higher on Friday. US West Texas Intermediate (WTI) crude futures slipped 11 cents, or 0.16%, to $68.58 a barrel.
According to Qatar News Agency, the move follows a decision by seven OPEC+ members to increase their combined oil output by 188,000 barrels per day from August. This decision was made in response to efforts to maintain stability in the global oil market and adapt to evolving market conditions. The increase in production aims to balance the supply-demand dynamics and address concerns regarding potential shortages.
The adjustment in production targets is seen as a strategic step to ensure that the global oil market remains stable, especially in light of increasing exports through the Strait of Hormuz, a critical passageway for the world's oil supply. The decision by OPEC+ is expected to influence oil prices and market trends in the coming months.