Brent crude traded around $71 per barrel on Monday, hovering near its lowest level since late February. The market remains under pressure as energy flows through the Strait of Hormuz continue to recover and expectations of higher OPEC+ output fuel concerns about a potential supply surplus.
Over the weekend, OPEC+ approved another increase in collective production quotas for next month. Seven members of the alliance, led by Saudi Arabia and Russia, agreed to raise output by an additional 188,000 barrels per day. The decision reflects the group's confidence that production can be increased as conditions across the Middle East continue to stabilize.
Major Gulf producers are also restoring exports. Saudi Arabia's crude shipments have climbed close to pre-conflict levels, while the UAE has likewise returned its oil exports to normal volumes.
Another factor weighing on prices is the normalization of shipping through the Strait of Hormuz. Oil and gas tanker traffic continued to recover on Sunday following brief disruptions, when several vessels unexpectedly altered their routes along one of the world's most important energy corridors.
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