Oil prices declined by more than 1% on Monday 6 July following the decision by the Organisation of the Petroleum Exporting Countries (Opec) and its allies, known as Opec+, to raise production targets from August.
By 07:56 GMT, Brent crude futures had dropped by $1.02, or 1.41%, to $71.10 a barrel (bbl) after ending slightly higher on Friday, reported Reuters
Meanwhile, US West Texas Intermediate (WTI) crude fell by $0.80, or 1.16%, to $67.89/bbl. There was no official settlement price for WTI on Friday due to the US holiday. Both Brent and WTI have shown limited change over the past week following several weeks of declines as investors monitored developments around supply and geopolitical tensions.
Seven Opec+ countries – Algeria, Iraq, Kuwait, Kazakhstan, Oman, Russia and Saudi Arabia – convened virtually on 5 July to assess market conditions. They reaffirmed their commitment to supporting oil market stability, opting for an adjustment of 188,000 barrels per day as part of additional voluntary changes announced in April 2023. The group confirmed its intention to monitor conformity with agreed targets, including full compensation for any overproduced volume since January 2024.