Oil prices were little changed on Monday, with Brent crude slipping 0.2% to settle at $71.99 per barrel and WTI easing 0.2% to $68.55 per barrel, as markets weighed improving global supply against ongoing uncertainty surrounding U.S.-Iran negotiations.
Crude prices remain near pre-conflict levels as exports through the Strait of Hormuz continue to recover, allowing previously stranded cargoes to reach global markets. Investors continued to monitor diplomatic efforts between the U.S. and Iran, although recent talks ended without a significant breakthrough, leaving some geopolitical uncertainty in place despite the current ceasefire.
The market also faced additional supply pressure after OPEC+ approved another production target increase beginning in August, while Saudi Arabia sharply reduced its official selling prices for Asian buyers, signaling a more competitive export strategy. Meanwhile, the United Arab Emirates continued increasing production toward record levels, reinforcing expectations that additional Middle Eastern crude will continue returning to global markets.
Despite the improving supply outlook, U.S. emergency crude inventories continued to decline, with the Strategic Petroleum Reserve falling to 319.5 million barrels, its lowest level since 1983. While tighter inventories continue to provide some underlying support, the market remains focused on recovering global supplies and the potential for increased production to outweigh demand growth in the months ahead.