Global oil prices declined after OPEC+ agreed to increase its production targets from August, while the continued recovery of oil shipments through the Strait of Hormuz helped ease concerns over global supply.

Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, agreed to raise their collective production target by 188,000 barrels per day from August.

The decision marks the fifth consecutive monthly increase in production targets since April, reflecting the group's gradual efforts to increase crude supplies to the global market.

Following the announcement, international oil prices moved lower. Brent crude fell to around $71.9 a barrel, while U.S. West Texas Intermediate (WTI) crude traded at approximately $68.5 a barrel.

The decline in prices was also supported by improving oil exports through the Strait of Hormuz. Although shipments from Gulf producers have increased following the ceasefire, export volumes remain about 40 percent below pre-conflict levels.

Since April, OPEC+ has announced a series of production increases amounting to a combined 800,000 barrels per day. However, analysts noted that much of the additional supply has yet to fully reach the market due to regional security concerns and disruptions affecting production and exports.

Market analysts also said investors will closely monitor whether member countries fully implement the latest production increase and whether global oil demand will be strong enough to absorb the additional supply. The outcome is expected to play a key role in determining the direction of oil prices in the coming months.(ILKHA)