Key facts
- Seven OPEC+ members, including Saudi Arabia and Russia, will increase oil production by a total of 188,000 barrels per day in August.
- This is the fifth consecutive month OPEC+ has agreed to expand output.
- Asian shares and U.S. futures were mixed, with technology stocks weighing on Tokyo and Seoul.
- Brent crude fell 25 cents to $71.87 a barrel, and U.S. benchmark crude lost 10 cents to $68.59 a barrel.
- Uncertainty over supplies persists amid stalled talks with Iran regarding the Strait of Hormuz.
Asian shares and U.S. futures traded mixed on Monday, with technology stocks contributing to declines in Tokyo and Seoul. Oil prices slipped as seven OPEC+ members, including Saudi Arabia and Russia, announced plans to collectively increase oil production by 188,000 barrels per day in August. This marks the fifth consecutive month of output expansion by the group.
Despite the planned increase, uncertainty over global oil supplies persists due to stalled talks with Iran concerning the full reopening of the Strait of Hormuz. These talks are on hold during funeral ceremonies for Ayatollah Ali Khamenei.
In early energy trading, Brent crude, the international benchmark, lost 25 cents to $71.87 a barrel. U.S. benchmark crude fell 10 cents to $68.59 a barrel.
Japan's Nikkei 225 index lost 0.4%, with technology companies SoftBank Group Corp. and Tokyo Electron shedding 3.4% and 1.4% respectively. South Korea's Kospi dipped 0.8%.
Conversely, Hong Kong's Hang Seng index gained 0.8%, and the Shanghai Composite index edged 0.1% higher. Australia's S&P/ASX 200 inched down 0.1%.
In currency markets, the U.S. dollar rose to 161.92 Japanese yen from 161.34 yen, while the euro cost $1.1432, down from $1.1440.