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Oil Drifts Down after OPEC+ Agrees to Raise Output Targets

FILE - Iraqi oil workers at an oil installation at Beiji in northern Iraq Tuesday, February 29, 2000. (AP Photo/Jassim Mohammed, File)
FILE - Iraqi oil workers at an oil installation at Beiji in northern Iraq Tuesday, February 29, 2000. (AP Photo/Jassim Mohammed, File)
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Oil Drifts Down after OPEC+ Agrees to Raise Output Targets

FILE - Iraqi oil workers at an oil installation at Beiji in northern Iraq Tuesday, February 29, 2000. (AP Photo/Jassim Mohammed, File)
FILE - Iraqi oil workers at an oil installation at Beiji in northern Iraq Tuesday, February 29, 2000. (AP Photo/Jassim Mohammed, File)

Oil prices inched lower on Monday after OPEC+ agreed to further increase its output targets from August while exports from key producers via the Strait of Hormuz are recovering, potentially adding to global supplies.

Brent crude futures fell 34 cents, or 0.47%, to $71.78 a barrel by 0408 GMT after settling 0.45% higher on Friday. US West Texas Intermediate crude was at $68.49 a barrel, down 20 cents, or 0.29%. There was no settlement for WTI on Friday as US markets were closed ahead of the Independence Day holiday on Saturday.

Both contracts were little changed last week, ⁠after mostly falling over ⁠the past few weeks, as investors kept a close eye on talks between the United States and Iran over the fate of shipping through the Strait of Hormuz while keeping tabs on the recovery in Gulf oil exports.

"Coming off the US long weekend, traders are sitting tight and waiting to see whether US-Iran relations will be cordial or volatile this week," said Tim Waterer, chief market analyst at ⁠KCM Trade.

The Organization of the Petroleum Exporting Countries and their allies including Russia agreed on Sunday to further increase output targets by 188,000 barrels per day from August, on top of similar increases for June and July.

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Business

Gold Eases from Two-week High as Firmer US Dollar Weighs

An employee displays gold bars at the Korea Gold Exchange store in Seoul (AFP)
An employee displays gold bars at the Korea Gold Exchange store in Seoul (AFP)
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Gold Eases from Two-week High as Firmer US Dollar Weighs

An employee displays gold bars at the Korea Gold Exchange store in Seoul (AFP)
An employee displays gold bars at the Korea Gold Exchange store in Seoul (AFP)

Gold retreated after touching its highest level in two weeks on Monday as the US dollar edged up from recent lows, though easing bets on Federal Reserve interest rate hikes limited bullion's losses.

Spot gold was down 0.4% at $4,160.33 per ounce, as of 0451 GMT, after hitting its highest since June 22 earlier in the day. US gold futures ‌for August ‌delivery climbed 1.1% to $4,172 per ounce, according to Reuters.

"Gold continues to ‌face ⁠headwinds from a ⁠resilient US dollar," said Tim Waterer, chief market analyst at KCM Trade.

"This week's FOMC Meeting Minutes will be closely watched for clearer signals on the Fed’s monetary policy leanings. Investors will be looking for evidence of whether other committee members share Kevin Warsh’s hawkish outlook or if there is more dovish sentiment within ⁠the group."

The dollar gained 0.1%, making greenback-priced bullion ‌more expensive for holders of other ‌currencies.

Bullion gained more than 2% last week, snapping a four-week losing ‌streak, after softer-than-expected US payrolls data eased worries about persistent ‌inflation and higher interest rates.

Data on Thursday showed US job growth slowed sharply in June and payroll gains for the prior two months were revised lower, pointing to a cooling labor market and prompting markets to ‌dial back expectations for a near-term Fed rate hike.

Traders now see about a 55% chance ⁠of a ⁠rate increase in September, down from more than 60% before the data, according to the CME FedWatch tool.

Lower interest rates tend to be favorable to gold, as it is a non-yielding asset.

J.P. Morgan said demand for gold from key sectors would not be as strong as it had expected, capping bullion prices this year at $4,300 in the third quarter and $4,500 in the fourth quarter.

Among other metals, spot silver fell 1% to $61.77 per ounce after hitting its highest since June 23 earlier. Platinum lost 0.3% to $1,632.80 per ounce and palladium was down 0.5% at $1,267.65 per ounce.

Business

Prince Sultan bin Abdulaziz Int'l Airport Welcomes First Seasonal Direct Flight from Russia's Sochi

Prince Sultan bin Abdulaziz International Airport in Tabuk, operated by Cluster2 Airports, welcomed the first seasonal direct flight of 2026 from the Russian city of Sochi. (SPA)
Prince Sultan bin Abdulaziz International Airport in Tabuk, operated by Cluster2 Airports, welcomed the first seasonal direct flight of 2026 from the Russian city of Sochi. (SPA)
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Prince Sultan bin Abdulaziz Int'l Airport Welcomes First Seasonal Direct Flight from Russia's Sochi

Prince Sultan bin Abdulaziz International Airport in Tabuk, operated by Cluster2 Airports, welcomed the first seasonal direct flight of 2026 from the Russian city of Sochi. (SPA)
Prince Sultan bin Abdulaziz International Airport in Tabuk, operated by Cluster2 Airports, welcomed the first seasonal direct flight of 2026 from the Russian city of Sochi. (SPA)

Prince Sultan bin Abdulaziz International Airport in Tabuk, operated by Cluster2 Airports, welcomed the first seasonal direct flight of 2026 from the Russian city of Sochi, in cooperation with Azimuth Airlines, the Saudi Press Agency reported on Sunday.

The new seasonal route is part of Cluster2 Airports’ efforts to strengthen air connectivity and expand its network of destinations in collaboration with its partners. The initiative aims to meet growing travel demand while offering passengers greater choice through the introduction of new international destinations.

The direct Tabuk–Sochi service operates once a week.

Business

Iraq Signs Deal with Oil Services Giant Halliburton

This picture shows the Nahr Bin Omar oil field and facility in Iraq's southern port city of Basra on June 14, 2024. (AFP)
This picture shows the Nahr Bin Omar oil field and facility in Iraq's southern port city of Basra on June 14, 2024. (AFP)
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Iraq Signs Deal with Oil Services Giant Halliburton

This picture shows the Nahr Bin Omar oil field and facility in Iraq's southern port city of Basra on June 14, 2024. (AFP)
This picture shows the Nahr Bin Omar oil field and facility in Iraq's southern port city of Basra on June 14, 2024. (AFP)

Iraq's government and US oil services giant Halliburton signed a deal Sunday to manage two oil fields in the country's south, as Baghdad looks to boost production.

The state-owned "Basra Oil Company has signed a joint management contract with the American company Halliburton for the Bin Omar and Sinbad oil fields" in Basra province, said the Iraqi oil ministry's media office.

Iraqi Oil Minister Bassem Khodeir said the deal with Halliburton aligns with the government's plans to "boost oil and gas production capacity".

He added that Iraq aims to boost oil output at the Bin Omar field by 150,000 barrels per day (bpd) within five years, along with 300 million cubic feet of associated gas.

Production at the Sinbad oil field should increase by 80,000 to 100,000 bpd.

Baghdad's new government led by Prime Minister Ali al-Zaidi has urged the OPEC oil cartel to increase Iraq's oil production quota, taking into account the damage done to its industry from past conflicts and the recent Middle East war.

Like other oil producers, Iraq, a founding member of OPEC, was greatly affected by the US-Iran conflict, as it is hugely dependent on oil exports, which make up about 90 percent of its budget revenues.

The new contract with Halliburton was signed prior to al-Zaidi's upcoming visit to Washington later this month.

Al-Zaidi, who only recently took office with the blessing of the United States, hopes to attract more US investment to Iraq, which urgently needs to revive its economy, especially after revenue losses caused by the halt of oil exports during the Middle East war.