What is the story about?
Oil prices declined as flows persisted via the Strait of Hormuz and the OPEC+ signaled increasing supplies.
Brent declined below $72 a barrel, while West Texas Intermediate was close to $68 a barrel.
Oil and gas shipping along a US-protected corridor in the waterway showed signs of recovering Sunday, a day after several vessels had performed unexplained U-turns and detours in the vital energy corridor.
Separately, OPEC+ members backed another modest rise in quotas for next month, with seven nations led by Saudi Arabia and Russia agreeing to add 188,000 barrels a day in a further roll-back of curbs made a few years ago. At present, those extra barrels are theoretical, but the group’s decision signals a desire to add output as conditions in the region continue to normalize.
Brent crude collapsed by 30% in the second quarter as Washington and Tehran agreed to an interim peace deal, clearing the way for a brisk — even if yet incomplete — resumption of traffic via Hormuz. Against that backdrop, Wall Street banks have forecast that prices have scope to slump further this half, with Citigroup Inc. flagging the possibility of a return to $60 by year-end.
Major Persian Gulf producers have been ramping up output at a rapid clip. Among them, Saudi Arabia’s exports have already surged close to their pre-war levels as the kingdom gets its tankers through Hormuz. The United Arab Emirates — which quit OPEC during the conflict — also restored flows.
Traders will be on the lookout this week for the release of official selling prices from Saudi Arabia, the UAE and other producers as they attempt to bring more product back to market. For July, Riyadh cut the premium of its main crude grade to Asia to $9.50 a barrel, down from $15.50 for June.
With inputs from Bloomberg
Brent declined below $72 a barrel, while West Texas Intermediate was close to $68 a barrel.
Oil and gas shipping along a US-protected corridor in the waterway showed signs of recovering Sunday, a day after several vessels had performed unexplained U-turns and detours in the vital energy corridor.
Separately, OPEC+ members backed another modest rise in quotas for next month, with seven nations led by Saudi Arabia and Russia agreeing to add 188,000 barrels a day in a further roll-back of curbs made a few years ago. At present, those extra barrels are theoretical, but the group’s decision signals a desire to add output as conditions in the region continue to normalize.
Brent crude collapsed by 30% in the second quarter as Washington and Tehran agreed to an interim peace deal, clearing the way for a brisk — even if yet incomplete — resumption of traffic via Hormuz. Against that backdrop, Wall Street banks have forecast that prices have scope to slump further this half, with Citigroup Inc. flagging the possibility of a return to $60 by year-end.
Major Persian Gulf producers have been ramping up output at a rapid clip. Among them, Saudi Arabia’s exports have already surged close to their pre-war levels as the kingdom gets its tankers through Hormuz. The United Arab Emirates — which quit OPEC during the conflict — also restored flows.
Traders will be on the lookout this week for the release of official selling prices from Saudi Arabia, the UAE and other producers as they attempt to bring more product back to market. For July, Riyadh cut the premium of its main crude grade to Asia to $9.50 a barrel, down from $15.50 for June.
With inputs from Bloomberg
