Oil prices fell on Monday after the Organisation of Petroleum Exporting Countries (OPEC) agreed to further increase its output targets from August.
The seven OPEC+ countries, which previously announced additional voluntary adjustments in April and November 2023, on Sunday decided to implement a production adjustment of 188 thousand barrels per day from the additional voluntary adjustments announced in April 2023.
Checks by ThePreview Media Monday morning showed that Brent crude futures fell 41 cents, or 0.57 per cent, to $71.71 a barrel at 0942 GMT after settling 0.45 per cent higher on Friday.
U.S. West Texas Intermediate crude was at $68.32 a barrel, down 37 cents, or 0.54 per cent. Both contracts were little changed last week after mostly falling over the past few weeks.
In April 2023, OPEC said it would start “a voluntary reduction” of 1.66 million barrels per day in its production of crude oil alongside other members of OPEC.
In November 2023, OPEC and its allies agreed to cut monthly oil output by an additional 1 million barrels per day starting in 2024.
At the time, the OPEC Secretariat noted that the announcement of additional voluntary cuts was aimed at supporting the stability and balance of oil markets.
ALSO READ: UAE announces exit from OPEC, OPEC+
On Sunday, the oil cartel said the additional voluntary adjustments announced in April 2023 may be returned in part or in full, subject to evolving market conditions and in a gradual manner.
“The countries will continue to closely monitor and assess market conditions, and in their continuous efforts to support market stability, they reaffirmed the importance of adopting a cautious approach and retaining full flexibility to increase, pause or reverse the phase out of the voluntary production adjustments, including reversing the previously implemented voluntary adjustments announced in November 2023,” the oil cartel said.
The seven OPEC+ countries also noted that this measure will provide an opportunity for the participating countries to accelerate their compensation.
