Oil prices rose sharply on Monday, gaining more than $1 per barrel, after the Organization of the Petroleum Exporting Countries (OPEC) and its allies announced a steady output increase for July, matching the increments of the previous two months.
Brent crude futures advanced $1.46, or 2.33%, to settle at $64.24 per barrel, rebounding after a 0.9% decline on Friday. Similarly, U.S. West Texas Intermediate (WTI) crude climbed $1.66, or 2.73%, to $62.45, recovering from a 0.3% dip in the prior session.
The decision by the OPEC+ alliance to boost production by 411,000 barrels per day (bpd) in July came as a relief to market participants who had anticipated a more aggressive hike. This marks the third consecutive month the coalition has opted for the same production increase as it seeks to reclaim market share and rein in countries that have exceeded output quotas.
Looking ahead, analysts at Goldman Sachs project OPEC+ will authorize a final output rise of 410,000 bpd in August.
