OPEC+ output boost pushes global oil prices lower, affecting Pakistan market

OPEC+ announced that its seven member countries – Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman – will increase daily crude output by 188,000 barrels in August. The added supply and the resumption of exports through the Strait of Hormuz eased market concerns, leading to a modest decline in spot prices on Tuesday. Brent crude fell 24 cents (0.33%) to $71.88 per barrel and U.S. West Texas Intermediate slipped 11 cents (0.16%) to $68.58.

In parallel, futures contracts for both benchmarks rose, with Brent futures up $0.88 to $72.87 and WTI futures up $0.82 to $69.37. The mixed price signals coincided with a sharp fall in gold prices, which dropped $24.10 per ounce to $4,143.40. Analysts noted that continued output growth and stable security in the Middle East could keep downward pressure on oil prices, while the recent movements also influenced Pakistan’s fuel and gold markets, where local dealers reported lower gold prices and a recent reduction in petrol and diesel rates.