Global Oil Prices Fall as OPEC+ Raises August Output Targets

July 6, 2026

New Delhi, July 6: Global crude oil prices fell by nearly 1 per cent on Monday after OPEC+ agreed to increase oil production from August and improving exports through the Strait of Hormuz eased concerns over global supply disruptions.

The move signalled that more crude oil would be available in the international market, reducing fears of shortages and putting downward pressure on prices.

How Did Oil Prices Fall?

Oil prices declined primarily because OPEC+, the alliance of major oil-producing countries led by Saudi Arabia and Russia, decided to raise production targets for August.

Under the plan, seven key producers will collectively increase output by 188,000 barrels per day. The decision is part of the group’s strategy to gradually reverse the voluntary production cuts introduced in 2023 to support oil prices.

The additional supply means more crude oil will enter the global market, which generally leads to lower prices when demand remains stable.

Another key factor was the recovery in oil shipments through the Strait of Hormuz, one of the world’s most important oil transit routes. Following easing geopolitical tensions and an interim peace agreement between the United States and Iran, exports from Gulf producers have returned close to normal levels.

As a result, global markets are witnessing improved crude availability, reducing concerns over supply disruptions.

Brent, WTI Prices Decline

International benchmark Brent crude fell 0.76 per cent (55 cents) to $71.55 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped nearly 1 per cent (68 cents) to trade below $69 per barrel.

More Supply Expected in Global Markets

If implemented, the latest production increase will take OPEC+’s cumulative output additions since it began reversing its production cuts to around 940,000 barrels per day, equivalent to nearly 1 per cent of global oil demand.

Saudi Arabia and the United Arab Emirates (UAE) have already restored exports close to pre-conflict levels, increasing crude availability across global markets, particularly in Asia.

Analysts say the increased supply has created a surplus in some Asian markets, reversing the sharp price spike witnessed during recent geopolitical tensions and intensifying competition among OPEC producers for market share.

The August increase is expected to be the second-last phase of restoring the production cuts announced in 2023, with one final output hike likely in September to complete the rollback.