DTN Oil Update
Crude Oil Futures Steady as OPEC+ Supply Rise
HOUSTON (DTN) -- Crude futures were little changed to start the week on Monday, settling pre-war levels as improving short-term global supply eased market concerns, supported by increased oil tanker traffic through the Strait of Hormuz.
NYMEX WTI for August delivery edged down $0.07 to settle at $68.62 bbl, while the front-month ICE Brent crude futures contract dropped $0.08 to settle at $72.04 bbl.
In contrast, the NYMEX ULSD futures contract for August delivery rose $0.1183 to settle at $3.3005 gallon while August RBOB increased by $0.0886 to close at $3.3005 gallon.
The U.S. Dollar Index inched up by 0.014 points to 100.64 against a basket of foreign currencies.
Shipping data showed daily crude flows through the reopened Strait of Hormuz had risen to more than 10 million bpd. Prior to the Iran war, volume was at around 16 million bpd. Nearly 35 vessels transited the waterway over the past 24 hours, while about 280 vessels remain queued to pass through the Strait, according to media reports.
The bearish tone in the oil futures market was driven also by news that seven OPEC+ countries will boost output by 188,000 bpd from August as crude prices fall and supply lines begin normalizing with the ceasefire in the Iran war.
The decision was announced during the monthly meeting of the Organization of the Petroleum Exporting Countries (OPEC) on Sunday, July 5. This marks the fifth consecutive monthly increase as the group gradually unwinds voluntary supply cuts introduced in 2023. OPEC+ groups the 12 core members of OPEC and 10 allies.
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