Global oil prices have decreased against the backdrop of increased OPEC+ production and tensions in the Middle East.
Oil prices started the week with a slight decrease, which was a result of the OPEC+ decision to raise production from August, as well as geopolitical tensions in the Middle East and the relations between the U.S. and Iran.
On Monday, the price of Brent crude oil fell by 34 cents, or 0.47%, to $71.78 a barrel, while U.S. WTI decreased by 20 cents, or 0.29%, to $68.49 a barrel. The main event influencing prices was the decision by OPEC+ to increase oil production. This decision was made following previous increases in June and July. However, actual production growth was limited due to export disruptions caused by the conflict between Iran and Israel.
Investors continue to monitor the relations between Washington and Tehran, which remain an important factor for the market. KCM Trade Chief Analyst Tim Waterer noted that traders have taken a wait-and-see approach, as developments in the U.S.-Iran relationship could significantly impact further market actions.
As previously reported, oil production by OPEC countries in June increased to 19.43 million barrels per day, while exports from the region exceeded 10 million barrels per day. However, this figure is still approximately 40% lower than before the onset of hostilities. Meanwhile, Russia has increased oil shipments from western ports, compensating for the loss of refinery capacities due to attacks by Ukrainian drones.
| Indicator | June 2023 |
| OPEC Oil Production | 19.43 million barrels/day |
| Russia’s Shipments | Record Level |
This price decrease and events in the Middle East could have long-term implications not only for the oil market but also for the geopolitical climate worldwide.
