Oil prices dip but stay close to $120 after OPEC+ deal to boost supply

Published: Updated:
Read Mode
100% Font Size
3 min read

Oil prices dipped on Monday after topping $120 a barrel as Saudi Arabia raised crude prices for July.

Crude moved lower amid doubts that last week’s decision by OPEC+ oil producers to boost their monthly output target would translate into a jump in output needed to ease tight supply.

For the latest headlines, follow our Google News channel online or via the app.


Brent crude was down 52 cents, or 0.4 percent, to $119.20 a barrel at 1240 GMT after touching an intraday high of $121.95.

US West Texas Intermediate (WTI) crude futures were down 54 cents, or 0.5 percent, at $118.33 a barrel after hitting a three-month high of $120.99.

Saudi Arabia raised the July official selling price (OSP) for its flagship Arab light crude to Asia by $2.10 from June to a $6.50 premium, the highest since May, when prices hit all-time highs due to worries of disruption in supplies from Russia.

The price increase followed a decision last week by the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, to boost output for July and August by 648,000 barrels per day, or 50 percent more than previously planned.

The increased target was spread across all OPEC+ members, however, many of which have little room to increase output and which include Russia, which faces Western sanctions.

“With only a handful of... OPEC+ participants with spare capacity, we expect the increase in OPEC+ output to be about 160,000 barrels per day in July and 170,000 bpd in August,” JP Morgan analysts said in a note.

On Monday, Citibank and Barclays raised their price forecasts for 2022 and 2023, saying they expected Russian output and exports to fall by around 1-1.5 million bpd by end-2022.

Separately, Italy’s Eni and Spain’s Repsol could begin shipping small volumes of Venezuelan oil to Europe as soon as next month, five people familiar with the matter told Reuters.

Read more: US boosts biofuel quotas as gasoline prices surge

Top Content Trending