Key facts
- Oil prices edged higher as traders focused on supply increases and demand prospects.
- Brent crude futures gained 0.39% to $72.29 a barrel, and WTI crude rose 0.26% to $68.84 a barrel.
- The UAE raised its crude output to over 3.8 million bpd in June, its highest since April 2020.
- Saudi Arabia significantly cut its August official selling price for Arab Light crude to Asia.
- OPEC+ agreed to increase output targets by 188,000 bpd from August.
Oil prices saw a slight increase as traders shifted focus to supply recovery and demand prospects, moving past easing geopolitical tensions in the Middle East. Brent crude futures rose 0.39% to $72.29 a barrel, and U.S. West Texas Intermediate crude gained 0.26% to $68.84 a barrel.
The United Arab Emirates, which recently exited OPEC+ production quotas, boosted its crude output to over 3.8 million barrels per day in June, its highest level since April 2020. This increase in exports is partly attributed to the resumption of flows via the Strait of Hormuz.
Meanwhile, Saudi Arabia reduced the August official selling price for its flagship Arab Light crude to Asia by $11 from the previous month, the largest cut in over two decades, setting it $1.50 below the Oman/Dubai average.
OPEC+ nations, excluding the UAE, are reportedly set to decide on a further increase of 188,000 barrels per day to their production quotas for August, following similar agreed boosts for July. However, the market's muted reaction suggests that much of this potential supply increase may already be priced in, raising questions about OPEC+'s diminishing influence amid rising U.S. production.