EMEA Oil Update: Crude Steadies After Saudi Arabia Cuts Prices, OPEC Hikes Output

EMEA crude futures were little changed in after-hours trading on Monday after OPEC+ agreed to further increase output targets from August and Saudi Arabia announced significant price cuts for Asian customers. Brent crude futures slipped by 0.4% to $71.83 per barrel, while Murban crude futures retreated by 0.6% to $66.06/bbl. Soojin Kim, research analyst at MUFG, said that crude prices traded in a narrow range as continued recovery in shipping via the Strait of Hormuz and a planned OPEC+ production increase of 188,000 barrels per day reinforced expectations of improving global supply. On Sunday, OPEC+ countries agreed to another modest increase in their oil-production quotas for August, adding to the prospects of more supply at a time when crude prices are falling amid the gradual reopening of Hormuz for oil exports. The seven countries, led by Saudi Arabia and Russia, agreed to increase quotas by 188,000 b/d, on top of similar increases for June and July. The producer cartel cited its commitment to supporting global crude market stability. However, increases in June and July have so far been theoretical due to the double blockade of Hormuz and the Middle East conflict,.