Oil prices declined on Monday as investors anticipated another output hike by OPEC+ in August, marking the fifth consecutive monthly increase since the group began rolling back production cuts in April. Brent crude futures dropped 13 cents (0.19%) to $66.67 per barrel, while U.S. West Texas Intermediate crude fell 32 cents (0.49%) to $65.20 per barrel.
The expected production increase of 411,000 barrels per day comes as OPEC+ prepares to meet on July 6 to decide on August supply levels. This follows similar-sized output boosts in May, June, and July aimed at regaining market share amid rising U.S. production and shifting global demand.
Despite these supply increases, concerns persist over slower global oil demand growth, particularly from China, which continues to weigh on prices. Additionally, geopolitical tensions in the Middle East have recently influenced market volatility. Brent prices surged above $80 per barrel in mid-June following conflict involving Iran’s nuclear facilities but eased back to around $67 after a ceasefire announcement.
Analysts note that while OPEC+’s strategy to accelerate production hikes is clear, ongoing uncertainties in demand and geopolitical developments will continue to impact oil market dynamics in the near term.
