Oil prices started the week slightly lower, weighed by easing geopolitical tensions in the Middle East and expectations of another production increase from OPEC+ in August, which improved the outlook for global supply amid ongoing demand uncertainty.
By 3:30 pm AEST (5:30 am GMT), Brent crude futures for August delivery fell 14 cents, or 0.2%, to $67.63 per barrel. The more active September contract declined 16 cents to $66.64.
U.S. West Texas Intermediate (WTI) crude for August shed 30 cents, or 0.5%, to $65.22.
Despite last week marking the biggest weekly drop for both benchmarks since March 2023, oil remains on track to finish June with a second consecutive monthly gain of more than 5%.
Brent prices spiked above $80 earlier this month after the United States bombed Iran’s nuclear facilities on 13 June, escalating a 12-day conflict that began with Israeli strikes.
However, prices retreated sharply to around $67 following U.S. President Donald Trump’s announcement of a ceasefire between Iran and Israel.
Adding to the downward pressure, four OPEC+ delegates indicated the group is likely to raise production by 411,000 barrels per day in August. This follows similar output increases for May, June and July, and would mark the fifth monthly hike since OPEC+ began unwinding cuts in April.
The next meeting of the group is scheduled for 6 July.
Still, concerns over sluggish global demand continue to weigh on sentiment. China’s factory activity contracted for a third consecutive month in June, reflecting weak domestic demand and faltering exports amid continued uncertainty over U.S.-China trade relations.
