Brent price drops to $70 as OPEC+ boosts output

Brent crude fell to around $70‑$72 a barrel after the OPEC+ alliance announced a production increase of about 188,000 barrels per day for August, marking the fifth consecutive month of higher output. The rise in supply, combined with weakened demand from Asia—particularly China, which cut purchases—pushed the benchmark lower, easing energy costs for European consumers and reducing inflationary pressure.

Analysts noted concerns about a potential oversupply, while market participants watched for short‑term spikes, with Forex analyst Razan Hilal warning of a possible "short‑term rally" if geopolitical tensions flare. The price correction also reflects the impact of an exemption on Iranian crude and ongoing negotiations to reopen the Strait of Hormuz, which carries roughly one‑fifth of global oil shipments.