Oil prices fell on Monday, July 6, 2026, hitting their lowest levels since late February. The decline was driven by two key developments: the resumption of smoother energy flows through the Strait of Hormuz — a critical global shipping lane — and expectations of higher output from the OPEC+ alliance, raising concerns about potential supply oversupply.
OPEC+ Approves Modest Production Increase
Member countries of OPEC+, including Saudi Arabia and Russia, agreed to raise collective oil production by 188,000 barrels per day for the coming month. Seven nations led the decision, signaling growing consensus within the group to gradually ramp up supply as regional conditions in the Middle East continue to stabilize.
Gulf Producers Step Up Output
Major Gulf producers have also increased supply. Saudi Arabia’s oil exports have rebounded close to pre-war levels, while the United Arab Emirates — which exited OPEC during the recent conflict — has fully restored its oil shipments.
Hormuz Strait Traffic Normalizes
Traffic of oil and liquefied natural gas tankers through the Strait of Hormuz showed signs of normalization on Sunday. This followed an unusual pattern the previous day, when numerous vessels made unexplained U-turns and detours along the strategically vital route.
Market Reaction
In response, Brent crude futures traded near $71 per barrel, while U.S. West Texas Intermediate (WTI) crude slipped below $69 per barrel.