Global oil prices edged lower on Monday after OPEC+ agreed to raise its production targets for August, while recovering exports through the Strait of Hormuz eased concerns over supply disruptions.
Brent crude futures fell 0.47% to $71.78 per barrel, while U.S. West Texas Intermediate (WTI) crude slipped 0.29% to $68.49 per barrel in early trading as markets reacted to expectations of higher global oil supplies.
The Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, agreed to increase production targets by 188,000 barrels per day (bpd) from August. The increase follows similar output hikes announced for June and July as the group gradually unwinds earlier production cuts.
The latest decision comes as crude exports through the Strait of Hormuz continue to recover after disruptions caused by the recent Iran-Israel conflict. Tanker traffic through the strategic waterway has improved following a ceasefire, although export volumes remain below pre-conflict levels.
According to a Reuters survey, OPEC’s crude production rose by 3.3 million barrels per day in June compared with May, while Gulf oil exports climbed above 10 million bpd, reflecting a gradual recovery in regional supplies.
Additional supply is also expected from Russia, where crude exports from western ports reached record levels in June as refinery disruptions caused by Ukrainian drone attacks redirected more oil toward international markets.
The decline in crude prices could provide some relief to oil-importing countries such as Pakistan if the trend persists. Pakistan’s petroleum import bill and domestic fuel prices are closely linked to international crude oil movements, although exchange rates, taxes, and levies also influence prices at the pump
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