FX.co ★ Oil Holds Decline on Supply Glut Worries

Crude oil traded near $68 per barrel on Monday, hovering around its lowest level since late February, as the recovery of energy flows through the Strait of Hormuz and expectations of higher OPEC+ output stoked worries about a potential supply glut. OPEC+ members approved another modest increase in collective production quotas for next month, with seven countries led by Saudi Arabia and Russia agreeing to raise output by 188,000 barrels per day. The move underscores the group’s confidence in lifting production as conditions across the Middle East continue to stabilize. Major Persian Gulf producers have also been ramping up supply: Saudi Arabia’s exports have climbed back toward pre-war levels, while the UAE—having exited OPEC during the conflict—has similarly restored its shipments. Meanwhile, oil and gas tanker traffic through the Strait of Hormuz showed signs of returning to normal on Sunday, one day after several vessels executed unexplained U-turns and detours along the vital energy corridor.