Oil Prices Edge Slightly Higher Amid US‑Iran Talks and Rising OPEC Supply

Global crude benchmarks were largely unchanged on Tuesday, with Brent settling around $71.9 per barrel and U.S. WTI near $68.8. The modest gains followed expectations that renewed diplomatic talks between the United States and Iran could ease tensions in the Middle East.

Shipping through the Strait of Hormuz has resumed, with flow data showing an increase of about 14 million barrels per day on July 1, plus additional shipments from Saudi Arabia’s Yanbu and the UAE’s Fujairah that together add roughly 6.2 million barrels daily. Analysts note that the revived traffic supports a short‑term oversupply, pushing the market structure from backwardation into contango.

OPEC output rose by 3.3 million barrels per day in June, driven largely by a surge in Kuwait’s production to 1.65 million barrels per day, up from 0.58 million the previous month. Saudi Aramco has shifted from long‑term contracts to spot sales to accelerate deliveries to Asia. Despite the supply increase, demand remains weak, especially Chinese imports, limiting any significant price rally.