Crude oil prices stabilized at the start of the European session today, Monday, July 7, the opening session of the week, paring losses from the start of the Asian session after OPEC+ decided to increase production in August by more than expected. Some reports indicated that the actual increase in production was less than planned so far. Brent crude rose by about 0.54%, trading at $68.67 per barrel, while US crude (NYMEX) traded at $66.98 per barrel, up about 0.03%.
The Organization of the Petroleum Exporting Countries (OPEC) and its non-OPEC allies, led by Russia, in the OPEC+ alliance, decided on Saturday to increase production by 548,000 barrels in August for the fourth consecutive month, an increase that exceeded expectations and exceeded the increases in the previous three months of 411,000 barrels. Sources reported that OPEC+ will agree to another significant production increase for September at the August 3rd meeting, amounting to 550,000 barrels. This will complete the return of 2.17 million barrels of planned voluntary cuts to the market by the eight members (Saudi Arabia, the UAE, Iraq, Oman, Kuwait, Russia, Kazakhstan, and Algeria) in the OPEC+ alliance. This follows an increase of 136,000 barrels in April, followed by increases in May, June, and July of 411,000 barrels, then an increase of 548,000 barrels in August, and the 550,000 barrel increase in September, according to the source. The 300,000 barrel increase will allow the UAE to move to a larger share.