Global oil prices edged lower during trading on Monday, July 6, following a decision by OPEC+ to further lift its production limits. Concurrently, a visible rebound in oil exports passing through the strategic Strait of Hormuz has significantly eased market anxieties regarding potential supply shortages.
According to a report by Reuters, Brent crude fell by 24 cents to settle at $71.88 per barrel, while US West Texas Intermediate (WTI) crude dropped 11 cents to reach $68.58 per barrel.
The downward pressure on prices follows an agreement by the OPEC+ alliance on Sunday to increase its collective output ceiling by an additional 188,000 barrels per day (bpd) starting in August. This adjustment marks the fifth consecutive monthly production increase since the cartel initiated its phased rollback of previous production cuts.
Reuters noted that despite previous production hikes, the actual global supply of crude had been severely constrained in recent weeks. The bottlenecks were a direct consequence of the regional conflict involving the United States, Israel, and Iran, which had heavily disrupted commercial tanker transits through the critical chokepoint of the Strait of Hormuz. With tanker traffic now steadily resuming, maritime exports from Persian Gulf producers are demonstrating a clear upward trajectory.
