Oil Prices Extend Weekly Losses as Markets Await Higher Gulf Supply

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Oil prices declined on Monday, 6 July 2026, extending the losses recorded the previous week as markets anticipated an increase in supplies from Gulf producers.

As of 5:40 GMT, Brent crude futures for September 2026 delivery were down 0.24% at $71.95 a barrel.

West Texas Intermediate (WTI) crude for August 2026 delivery edged up 0.01% to $68.70 a barrel, according to live data from a Washington-based energy market platform.

Both benchmark crude contracts ended last week lower, with Brent falling 0.6% and WTI losing 0.8%, leaving both at their lowest levels since before the outbreak of the US-Israeli conflict with Iran in late February. The decline followed an agreement by OPEC+ to raise production targets from August, while exports from key Gulf producers through the Strait of Hormuz recovered, adding to expectations of increased global supply.

The seven OPEC+ members, led by Saudi Arabia, agreed to increase their collective production target by 188,000 barrels per day from August, following similar output increases introduced in June and July.

Although oil prices finished higher on Friday, 3 July, both benchmarks still recorded weekly losses as investors awaited the outcome of peace negotiations between Iran and the United States, hoping a deal would help restore oil flows through the Strait of Hormuz.

Price movements remained relatively subdued last week after several weeks of declines, with traders closely watching US-Iran negotiations over shipping through the Strait of Hormuz, while also monitoring the recovery in Gulf oil exports. "After the long weekend in the US, traders are keen to see whether relations between Washington and Tehran become more stable or more volatile this week," said Tim Water, chief market analyst at KCM Trade.

Analysts said much of the planned OPEC+ production increase may remain largely theoretical because the US-Israeli war with Iran has closed the Strait of Hormuz to oil tankers, restricting exports from major OPEC producers, including Saudi Arabia, Kuwait and Iraq.

A Reuters survey found that OPEC oil production rose by 3.3 million barrels per day in June compared with May, reaching 19.43 million barrels per day and recovering from its lowest level in more than two decades.

Separate data showed Gulf oil exports increased by more than 3 million barrels per day in June from the previous month, surpassing 10 million barrels per day. However, exports remained around 40% below pre-war levels. Meanwhile, oil shipments from Russia's western ports reached a record high in June and are expected to remain elevated in July after Ukrainian drone attacks damaged several Russian refineries, prompting Moscow to boost crude exports.