Oil slips as OPEC+ agrees to raise August output targets by 188,000 bpd

Oil prices edged lower early on Monday after OPEC+ agreed to raise production targets again from August, while improving exports from the Gulf and higher Russian shipments fuelled expectations of increased global crude supplies

While Brent crude slipped 0.58% to $71.70 a barrel, WTI crude was down 0.36% at $68.44 a barrel around 7:30 am IST.

The latest decline came after Sunday's OPEC+ meeting, where the oil-producing alliance agreed to lift output targets by a combined 188,000 barrels per day from August. It is the fifth straight month that the group has opted to increase production. The latest increase follows similar output hikes announced for June and July.

Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman are participating in the latest production increase.

In its statement, OPEC+ said, “The countries will continue to monitor and assess market conditions, and in their continuous efforts to support market stability, they reaffirmed the importance of adopting a cautious approach.”

While production targets have continued to rise, actual supply has not increased to the same extent. The US-Israeli war with Iran had disrupted tanker movements through the Strait of Hormuz, affecting key OPEC producers such as Saudi Arabia, Kuwait and Iraq and limiting their ability to raise output.