Oil edges down on easing Middle East risks but gains for a second month
Oil prices edged down on Monday as investors weighed easing Middle East risks and a possible OPEC+ output increase in August.
Both Brent and U.S. crude oil benchmarks posted their biggest weekly declines since March 2023 last week but rose for the second consecutive month, gaining around 6% and 7% respectively.
Brent futures settled down 16 cents, or 0.2%, to $67.61 a barrel and expired on Monday. The more active September contract ended at $66.74.
U.S. West Texas Intermediate crude settled down 41 cents, or 0.6%, at $65.11 a barrel.
A 12-day war that started with Israel targeting Iran's nuclear facilities on June 13 sent prices above $80 a barrel before sliding back to $67.
Meanwhile, U.S. crude oil production hit a record 13.47 million barrels per day in April, up from 13.45 million bpd in March, according to data released by the Energy Information Administration as part of its Petroleum Supply Monthly series.
Four OPEC+ sources told Reuters last week that the group was set to boost production by 411,000 bpd in August after similar increases for May, June and July.
If the increase is agreed, it would bring the total rise in supply from OPEC+ to 1.78 million bpd so far this year, equivalent to over 1.5% of total global demand.
The oil producer group is set to meet again on July 6.
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. Saudi Arabia and the United Arab Emirates, meanwhile, made smaller increases than allowed.
Source : Reuters
