Shafaq News
Oil pricesinched lower on Monday after OPEC+ agreed to further increase its outputtargets from August while exports from key producers via the Strait of Hormuzare recovering, potentially adding to global supplies.
Brent crudefutures fell 34 cents, or 0.47%, to $71.78 a barrel by 0408 GMT after settling0.45% higher on Friday. U.S. West Texas Intermediate crude was at $68.49 abarrel, down 20 cents, or 0.29%. There was no settlement for WTI on Friday asU.S. markets were closed ahead of the Independence Day holiday on Saturday.
Both contractswere little changed last week, after mostly falling over the past few weeks,as investors kept a close eye on talks between the United States and Iran overthe fate of shipping through the Strait of Hormuz while keeping tabs on therecovery in Gulf oil exports.
"Comingoff the U.S. long weekend, traders are sitting tight and waiting to see whetherU.S.-Iran relations will be cordial or volatile this week," said TimWaterer, chief market analyst at KCM Trade.
TheOrganization of the Petroleum Exporting Countries and their allies includingRussia agreed on Sunday to further increase output targets by 188,000 barrelsper day from August, on top of similar increases for June and July.
However, theincrease has remained largely on paper because of the U.S.-Israeli war with Iran, which closed the Strait of Hormuz to tankertraffic for key OPEC producers, including Saudi Arabia, Kuwait and Iraq,capping their output.
"Thenumber was largely in line with expectation," IG market analyst TonySycamore said.
"With UAEleaving and when quotas are probably still not being met due to productionstill ramping up after the conflict - I'm not sure they mean much at the moment."
The United ArabEmirates quit OPEC as of May 1.
Gulf membershave begun reviving supplies shut during the Iran war and are increasingexports.
OPEC oil outputin June rose by 3.3 million barrels per day month-on-month to 19.43 millionbpd, a Reuters survey found, recovering from its lowest in morethan two decades.
Gulf oilexports in June jumped more than 3 million barrels from May to exceed 10million barrels per day, although the volume remained 40% below pre-war levels,data showed.
In addition,oil shipments from Russia's western ports hit a record high in June and areexpected to maintain that level in July as its refineries have been damaged indrone attacks by Ukraine that have forced Moscow to boost crude exports,industry sources said.
(REUTERS)
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