OPEC+ Boosts Output: Oil Prices Take a Hit

Oil prices declined by more than 1% Monday as OPEC+ surprised markets by increasing output beyond expectations for August, leading to concerns about potential oversupply.

Brent crude futures decreased by 80 cents to $67.50 a barrel, while U.S. West Texas Intermediate crude dropped $1.32 to $65.68. OPEC+ agreed to raise production by 548,000 barrels per day in August, raising competition and impacting prices.

The increment marks a shift from previous monthly increases and is part of an effort to utilize steady economic conditions and favorable market fundamentals. However, the anticipated increase has been largely sourced from Saudi Arabia, reinforcing confidence in oil demand.

(With inputs from agencies.)