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.

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.

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.

Source : Investing.com