Oil prices eased on Monday after OPEC+ agreed to raise its production target for August, adding to expectations of higher global crude supply. Brent crude fell to around $71.71 a barrel, while U.S. West Texas Intermediate slipped to about $68.32.
The producer group, led by Saudi Arabia and Russia, approved an increase of 188,000 barrels per day for August, following similar output hikes in June and July. The decision comes as oil exports through the Strait of Hormuz continue to recover after disruptions caused by the recent Iran conflict.
Although the higher production target is expected to boost supply, previous increases were only partly realised because tanker traffic through the Gulf was affected during the conflict, limiting exports from major producers including Saudi Arabia, Kuwait and Iraq.
Market sentiment was also weighed down by signs of weakening demand. ANZ forecast global oil demand will contract by 1.5 million barrels per day in 2026, citing a sharper-than-expected slowdown in the second quarter, though it expects consumption to recover later as supply normalises.
Additional pressure came from rising Gulf exports and increased spot crude sales by Abu Dhabi National Oil Company, while Ukraine said it carried out overnight strikes on oil refineries in Russia, highlighting ongoing geopolitical risks in global energy markets.