Oil prices edged lower on Monday following their sharpest weekly decline in two years, as traders assessed the likelihood of an OPEC+ supply increase and diminishing fears of conflict-driven disruptions in the Middle East.
West Texas Intermediate fell 0.6% to settle near US$65 a barrel, extending losses after last week’s 13% slump. Several OPEC+ delegates indicated the group may agree to a 411,000 barrel-per-day production hike for August at its upcoming Sunday meeting—marking the fourth consecutive month of expanded output.
Analysts say the market is stabilising around current levels, with demand over the northern summer set to be a key test. Attention also remains on Iran, as hedge funds increase bearish positions amid reduced geopolitical risk following a tentative truce with Israel.
Meanwhile, data shows commodity trading advisers have reduced their long positions in WTI futures, reflecting waning bullish sentiment. President Trump has floated the possibility of sanctions relief for Iran, contingent on its behaviour under the ceasefire.
