Global oil prices edged lower on Monday after OPEC+ agreed to increase oil production for August, while improving exports through the Strait of Hormuz eased concerns over supply disruptions.
Brent crude fell 0.47% to $71.78 per barrel, while U.S. West Texas Intermediate (WTI) slipped 0.29% to $68.49 per barrel in early trading as markets anticipated higher global crude supplies.
OPEC+ approved an increase of 188,000 barrels per day (bpd) in production from August, following similar output hikes in June and July as the group continues to gradually reverse earlier production cuts.
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Oil exports through the Strait of Hormuz have also recovered after disruptions caused by the recent Iran-Israel conflict. Although exports remain below pre-conflict levels, improved tanker traffic following the ceasefire has helped ease supply concerns.
Meanwhile, OPEC’s crude production increased in June, with Gulf oil exports surpassing 10 million barrels per day, while Russia also boosted exports from its western ports due to refinery disruptions.
If the decline in global oil prices continues, it could provide some relief for oil-importing countries such as Pakistan by reducing the petroleum import bill and easing pressure on domestic fuel prices. However, local fuel prices will still depend on factors such as the exchange rate, taxes, and government levies.
