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Investing.com--Oil prices traded in a largely stable manner Monday as Middle East risks eased while traders considered a possible OPEC+ output increase in August.
At 08:25 ET (12:25 GMT), Brent oil futures for August fell 0.1% to $66.72 a barrel, and West Texas Intermediate crude futures fell 0.2% to $65.35 a barrel.
Both benchmarks posted their biggest weekly decline since March 2023 last week, but are set to finish higher in June with a second consecutive monthly gain of more than 5%, having rallied strongly on the Israel-Iran war.
Israel-Iran ceasefire holds, supply risks ease
Crude was nursing sharp losses over the past week as an Israel-Iran ceasefire appeared to be holding, diminishing the prospect of supply disruptions in the Middle East.
The 12-day conflict had initially sent oil prices surging close to annual highs, especially after Israel and later the U.S. attacked Iran’s nuclear facilities.
But U.S,-brokered ceasefire has now largely held for a week, greatly diminished fears that a protracted conflict in the Middle East will disrupt oil supplies from the region, particularly the blocking of the Strait of Hormuz, a key oil shipping route.
OPEC+ output hike in focus ahead of July meeting
Oil was also pressured by concerns over more production increases by the Organization of Petroleum Exporting Countries and allies (OPEC+). The cartel is set to meet on July 6.
Reuters reported that the group will decide to increase production by 411,000 barrels per day in August, a similar margin as hikes seen in May, June, and July.
The cartel had begun scaling back two years of production cuts earlier this year, in part to offset the economic impact of persistently low oil prices, and in part to punish overproducers within its ranks.
Beyond the OPEC+, focus is also on U.S. fuel demand as travel activity increases with the summer season.
Ambar Warrick contributed to this article