Oil prices fell on Monday over expectations of another OPEC+ output hike in August amid persistent uncertainty over the outlook for global demand.
Investors also hope for the easing of geopolitical risks in the Middle East.
Brent crude futures fell 13 cents, or 0.19% p ercent, to $66.67 a barrel at 7:56 AM WAT. U.S. West Texas Intermediate crude dropped 32 cents, or 0.49 per cent, to $65.2 a barrel.
Last week, both benchmarks posted their biggest weekly decline since March 2023; however, they are set to finish higher in June with a second consecutive monthly gain of more than 5 per cent.
Weighing on the market, a Reuters report said four delegates from OPEC+, which includes partners of the Organization of the Petroleum Exporting Countries, said the group was set to boost production by 411,000 barrels per day in August, following similar-sized output increases for May, June and July.
A Reuters survey found that OPEC oil output rose in May but gains were limited by cuts by countries that had previously exceeded their quotas while Saudi Arabia and the United Arab Emirates made smaller increases than allowed.
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OPEC+ is set to meet on July 6, and this would be the fifth monthly increase since the group started unwinding production cuts in April.
However, analysts say pressure from concerns over slower global oil demand, particularly from China, is likely to persist.
Again, a 12-day war that started with Israel targeting Iran’s nuclear facilities on June 13 pushed up Brent prices, which surged above $80 a barrel after the U.S. bombed Iran’s nuclear facilities and then slumped to $67 after President Donald Trump announced an Iran-Israel ceasefire.
