Crude Oil Prices Slip After OPEC and Allies Agrees to Raise Output Targets | July 7, 2026

Crude oil prices edged lower on Monday, July 7, 2026, after OPEC And Allies agreed to increase production targets from August, while exports through the Strait of Hormuz continued to recover, raising expectations of improved global oil supplies, as per news reports. 

Brent crude futures declined US$0.24, or 0.33%, to US$71.88 per barrel, while U.S. West Texas Intermediate (WTI) crude slipped US$0.11, or 0.16%, to US$68.58 per barrel.  

Oil prices were largely unchanged last week as markets closely monitored geopolitical developments in the Middle East alongside supply trends. 

OPEC and Allies Approves Higher Output Targets 

The Organisation of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, agreed to raise production targets by 188,000 barrels per day from August. The move follows similar production increases announced for June and July as the group continues to unwind previous supply restrictions. 

Despite the decision, analysts believe the increase may have a limited near-term impact, as actual production has been constrained by recent geopolitical disruptions in the Gulf region. 

Gulf Exports Continue to Recover 

Oil exports from major Gulf producers have started to recover following disruptions caused by the recent conflict involving Iran. Tanker movements through the Strait of Hormuz have gradually resumed, allowing producers such as Saudi Arabia, Kuwait and Iraq to restore shipments. 

According to news reports, Gulf oil exports increased by more than 3 million barrels per day in June compared with May. However, export volumes remain around 40% below levels recorded before the conflict, indicating that supply recovery is still ongoing. 

Read More: India Dedicates First Integrated Refinery-cum-Petrochemical Complex; Projects Worth ₹1.06 Lakh Crore! 

Russia Adds to Global Supply 

Global supply expectations were also supported by rising exports from Russia. Shipments from the country's western ports reached a record high in June and are expected to remain elevated during July after refinery operations were disrupted by drone attacks, leading to higher crude exports. 

Meanwhile, OPEC's overall oil production recovered significantly in June as member countries restored output following earlier disruptions. 

Conclusion 

Crude oil prices remain under pressure as improving exports from Gulf producers and higher OPEC and Allies production targets point towards increased global supply. However, geopolitical risks in the Middle East continue to keep markets cautious, with investors closely monitoring further developments that could influence supply and demand. 

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