Global oil prices held close to the USD 110 mark on Monday, as traders balanced rising supply from OPEC+ against lingering amid ongoing West Asia tensions. Brent hovered near USD 108 per barrel in early trading, while U.S. benchmark West Texas Intermediate (WTI) stood around USD 101.8. Despite recent declines, losing about 5 per cent on Friday and another 3.4 per cent on Thursday, the overall price level remains elevated, keeping oil markets under close watch.
The persistence of high oil prices comes amid growing uncertainty about shipping conditions in the Strait of Hormuz, a critical artery for global energy supplies. Notably, the OPEC+ group has confirmed it will increase production by 188,000 barrels per day in June, continuing a gradual output expansion that began in 2025.
Over the past year, OPEC+ has followed a structural approach to boosting output. Monthly increases of over 400,000 barrels per day were seen during mid-2025, followed by several smaller adjustments and even a pause earlier this year. The group also made recent additions, such as 206,000 barrels per day in both April and May 2026.
Short-term price movements also reflect a degree of volatility. While Monday’s trading showed only a marginal dip of 0.1 per cent, the sharp declines in previous sessions suggest that traders remain sensitive to shifts in sentiment.
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