US Oil Update: Crude Little Changed as Markets Weigh Saudi Price Cuts, OPEC+ Output Hikes

Crude oil futures steadied in midday trading on Monday after OPEC+ agreed to further increase its output targets from August and Saudi Arabia announced significant price cuts for Asian customers. Front-month West Texas Intermediate crude futures eased by 0.4% to $68.45 per barrel, while Brent futures slipped 0.4% to $71.88/bbl. Saxo Bank strategists said that Brent trades steadily around $72/bbl, weighed down by continued flows through the Strait of Hormuz and after OPEC+ backed another 180,000 barrels per day production hike. Seven OPEC+ countries, led by Saudi Arabia and Russia, agreed on Sunday to another modest increase in their oil production quotas for August, adding to the prospects of more supply as crude prices fall amid the gradual reopening of Hormuz for oil exports. The producer group agreed to increase quotas by 188,000 b/d, on top of similar increases for June and July, citing members' commitment to support 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, which prevented regional producers from ramping up exports and output. Soojin Kim, research.