Oil prices fall as OPEC+ approves August output increase

Oil prices declined on Monday, July 6, 2026, after the Organization of the Petroleum ​Exporting Countries and its allies (OPEC+) approved another increase in crude production from August, while improving exports from the Gulf eased concerns over supply disruptions.

Brent crude futures slipped 34 cents, or 0.47 per cent, to $71.78 a barrel in early trading, while U.S. West Texas Intermediate (WTI) crude fell 20 cents, or 0.29 per cent, to $68.49 a barrel.

The modest decline followed Sunday’s decision by OPEC+, led by Russia, to raise production targets by 188,000 barrels per day from August. The increase comes after similar production hikes implemented in June and July.

Despite the latest move, analysts said the additional output is unlikely to have an immediate impact on the market because several producers are still recovering from disruptions caused by the recent conflict involving Iran, which temporarily affected oil shipments through the strategic Strait of Hormuz.

Investors are also closely watching developments in relations between the United States and Iran, with concerns over regional tensions continuing to influence market sentiment.

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“Coming off the U.S. long weekend, traders are sitting tight and waiting to see whether U.S.-Iran relations will be cordial or volatile this week,” said Tim Waterer, Chief Market Analyst at KCM Trade.

IG market analyst Tony Sycamore described the latest OPEC+ decision as largely expected, noting that actual production levels remain below targets as some member countries continue restoring output after the conflict.

Meanwhile, Gulf producers have resumed exports that were suspended during the crisis, helping to improve global crude supplies.

A Reuters survey showed OPEC’s oil production rose by 3.3 million barrels per day in June to 19.43 million barrels per day, marking a significant rebound from the bloc’s lowest output level in more than 20 years.