At 0756 GMT, Brent crude futures fell $1.02, or 1.41%, to $71.10 a barrel, while U.S. West Texas Intermediate (WTI) crude decreased by 80 cents, or 1.16%, to $67.89 a barrel. There was no WTI settlement on Friday as U.S. markets were closed ahead of the Independence Day holiday.<\/p>\n
The Organization of the Petroleum Exporting Countries and their allies including Russia (OPEC+) agreed on Sunday to further increase output targets by 188,000 barrels per day (bpd) from August, following similar target increases for June and July.<\/p>\n
However, implementation of these higher targets has been constrained. According to the report, the U.S.-Israeli war on Iran has closed the Strait of Hormuz to tanker traffic for key OPEC producers such as Saudi Arabia, Kuwait, and Iraq, effectively capping their export capacity and leaving much of the planned increase \u201con paper.\u201d<\/p>\n
Despite these constraints, PVM analysts noted that producers \u201care selling into a falling market, offering little hope of an imminent price recovery,\u201d while adding that lower prices could stimulate demand at a later stage. Gulf oil exports in June still rose, jumping by more than 3 million barrels from May to exceed 10 million bpd, although volumes remained around 40% below pre-war levels, according to available data.<\/p>\n
ANZ revised its outlook for global oil demand, stating it now expects demand to contract by 1.5 million bpd in 2026. The bank cited a sharper-than-expected downturn in the second quarter, noting that year-on-year declines could reach 4 million bpd based on preliminary data. ANZ added that it expects demand losses to moderate in the second half of the year as supply conditions improve and some deferred consumption returns.<\/p>\n
On the supply side, ADNOC has sold about 16 million barrels of Emirati crude at wider discounts in a fifth spot tender issued since June, according to trade sources, underscoring higher spot availability. In addition, oil shipments from Russia\u2019s western ports hit a record high in June and are expected to remain at that level in July, as damage to Russian refineries from Ukrainian drone attacks has led Moscow to increase crude exports, industry sources said.<\/p>\n
What caused oil prices to fall on Monday?<\/strong> How much did Brent and WTI crude decline?<\/strong> What is the new OPEC+ output target increase?<\/strong> How is global oil demand expected to change?<\/strong>
Oil prices fell due to OPEC+ agreeing to higher output targets from August, recovering exports through the Strait of Hormuz, increased Gulf and Russian shipments, and rising spot supply from ADNOC, all contributing to expectations of greater global supply.<\/p>\n
Brent crude futures fell by $1.02, or 1.41%, to $71.10 a barrel, while WTI crude dropped by 80 cents, or 1.16%, to $67.89 a barrel at 0756 GMT.<\/p>\n
OPEC+ agreed to increase its output targets by a further 188,000 bpd from August, in addition to similar target increases already set for June and July.<\/p>\n
ANZ expects global oil demand to contract by 1.5 million bpd in 2026, with preliminary data indicating year-on-year declines in the second quarter could reach 4 million bpd, before demand losses moderate in the second half of the year.<\/p>\n