Oil falls 1% as OPEC+ boosts output

• Oil prices fell over 1% after OPEC+ agreed to raise output targets from August.
• Brent crude dropped to $71.10 while WTI fell to $67.89 amid higher supply expectations.
• Markets also tracked recovering exports and rising global supply from key producers.

Oil prices fell on Monday after OPEC+ agreed to increase production targets starting in August, adding pressure to a market already focused on improving global supply conditions.

Brent crude and West Texas Intermediate both extended losses as traders reacted to higher expected output and signs of recovering exports through key shipping routes.

OPEC+ members agreed on Sunday to raise output targets by 188,000 barrels per day from August, following similar increases in June and July.

Brent crude futures fell $1.02 to $71.10 per barrel, while WTI crude dropped $0.80 to $67.89 per barrel during early trading.

PVM analysts said producers are “selling into a falling market,” while noting that lower prices could eventually support stronger demand recovery later.

Supply dynamics were also influenced by recovering Gulf exports and ongoing geopolitical uncertainty around the Strait of Hormuz, which remains a critical global transit route.

ANZ analysts said they now expect global oil demand to contract by 1.5 million barrels per day in 2026, although they see moderation in losses later in the year as supply stabilizes.

Additional pressure came from record Russian crude exports from western ports and discounted crude sales from Abu Dhabi National Oil Company, reflecting a broader rise in available global supply.