Oil prices fell on Monday as investors weighed easing Middle East risks along with the possibility of an OPEC+ output increase in August and uncertainty over the global demand outlook.

Brent crude fell 19 cents, or 0.3%, to $67.58 a barrel by 10:01 a.m. EDT (1501 GMT), ahead of the August contract expiring on Monday. The more active September contract fell 34 cents to $66.46. U.S. West Texas Intermediate crude fell 62 cents, or 1%, to $64.90 a barrel.

Brent and WTI benchmarks posted their biggest weekly declines since March 2023 last week but were set for a second straight monthly gain of 5.8% and 6.8%, respectively. The 12-day war that began with Israel targeting Iran's nuclear facilities on June 13 sent oil prices soaring above $80 a barrel before falling back to $67.

"Increased supply and a downbeat demand outlook from data reporting agencies will likely start to drive the oil market once again as tensions appear to have eased between Iran and Israel," StoneX analyst Alex Hodes said in a note on Monday.

Four OPEC+ sources told Reuters last week that the group would raise output by 411,000 barrels per day (bpd) in August after similar increases in May, June and July.

A survey of 40 economists and analysts in June forecast Brent crude would average $67.86 a barrel in 2025, up from May's estimate of $66.98, while U.S. crude was forecast to reach $64.51, above last month's estimate of $63.35. (alg)

Source: Reuters