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Oil is heading for the first monthly decline since November as OPEC+ completed the return of output that it halted during the pandemic.
West Texas Intermediate futures traded near $109 a barrel. OPEC+ rubber-stamped an increase in supply for August, but focus is turning to how much those members with spare production capacity will pump once the current agreement ends.
“Plain sailing as per the last many meetings,” said Ole Hansen, head of commodities strategy at Saxo Bank A/S. “Nothing new in terms of how to address the massive level of over-compliance. Demand destruction is needed to prevent an autumn of oil market discontent.”
The oil market was roiled by two conflicting drivers in June. Escalating fears over an economic slowdown as central banks aggressively raise interest rates has weighed on headline prices. Still, physical barrels are fetching enormous premiums as tight crude markets wrestle with outages from Libya to Ecuador.
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