Oil prices fell as OPEC+ countries decided to increase production and traffic revived in the Strait of Hormuz. On Monday, Brent crude traded down 0.15 percent at $71.87 a barrel in international markets. The price, which dropped to $71.09 during the day, approached its lowest level since February.
OPEC+ continues to raise output
The OPEC+ group decided at a virtual meeting on Sunday to increase daily output by 188,000 barrels starting in August. The countries that will raise production include Saudi Arabia, Iraq, Kuwait, Oman, Algeria, Russia and Kazakhstan. This decision marks the fifth consecutive monthly increase as the group gradually unwinds the cuts it began in 2023.
Strait of Hormuz traffic returns to normal
Maritime traffic in the Strait of Hormuz, through which one-fifth of global oil and LNG shipments pass, is gradually returning to normal after the US-Iran memorandum of understanding signed on June 17. During the conflict, Tehran's disruption of navigation in the waterway and targeting of regional countries had pushed oil prices to as high as $115 per barrel in early May. Although occasional violations and attacks have occurred since the ceasefire, ship transits are steadily increasing. According to LSEG data, 10 Japan-linked vessels exited the strait on Monday, while a supertanker carrying Saudi crude set sail for South Korea over the weekend.
Meanwhile, crude oil production by the United Arab Emirates, which left OPEC on May 1, rose above 3.8 million barrels per day in June, approaching a record level.
