Oil prices fall as Hormuz flows continue, OPEC+ boosts supply
What's the story
Oil prices have witnessed a decline as the flow of oil through the Strait of Hormuz continues. The Brent crude oil price fell below $72 per barrel, while West Texas Intermediate (WTI) hovered near $68 per barrel. This comes after a US-protected corridor for oil and gas shipping in the waterway showed signs of recovery on Sunday.
Supply boost
OPEC+ agrees to modest production increase
In a separate development, OPEC+ members have agreed to a modest increase in their production quotas for next month. Seven countries, led by Saudi Arabia and Russia, have agreed to add 188,000 barrels per day. This decision comes as the group looks to ramp up output amid improving regional conditions. However, these additional barrels are currently theoretical and not yet in production.
Price forecast
Wall Street banks predict further oil price declines
The second quarter saw Brent crude prices plummet by 30% as Washington and Tehran reached a temporary peace agreement. This has paved the way for a swift, albeit incomplete, resumption of traffic through Hormuz. In light of these developments, Wall Street banks have predicted that oil prices could fall further in this half. Citigroup Inc. even hinted at the possibility of prices dropping to $60 by year-end.