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.
