Oil prices declined on Monday as geopolitical risks in the Middle East eased and market expectations rose for a potential OPEC+ output increase in August, improving global supply sentiment amid ongoing demand uncertainty.
By 0344 GMT, Brent crude futures dropped 13 cents (0.19%) to $67.64 a barrel, just before the August contract’s expiry. The more active September contract also fell 18 cents to $66.62. Meanwhile, U.S. West Texas Intermediate (WTI) crude slid 32 cents (0.49%) to $65.20 a barrel.
The pullback follows last week’s steep losses, where both Brent and WTI saw their largest weekly drops since March 2023. However, both benchmarks are still poised to close June with over 5% monthly gains, marking their second consecutive positive month.
Earlier in June, Brent crude surged past $80 per barrel after Israel launched strikes on Iran’s nuclear facilities, prompting a brief regional conflict. Prices later plummeted to $67 following U.S. military action and a ceasefire announcement by President Donald Trump, which eased supply fears.
The market now awaits signals from OPEC+, as speculation builds around a possible output hike in August, which could further stabilize supply and temper price volatility.
