WASHINGTON (dpa-AFX) - Crude oil prices closed lower on Monday amid a backdrop of easing Middle Eastern tensions as well as concerns of excess supply as OPEC+ plans to scale up production.
WTI Crude Oil for August delivery closes down by $0.41 to settle at $65.11 per barrel today.
August month Brent crude oil was last seen trading down by $0.15 to $67.62 per barrel today.
The June 12th attack on Iran by Israel pushed oil and energy prices higher.
With the US President Donald Trump announcing a ceasefire between the two nations on June 24, oil lost the risk-premium it enjoyed for 12 days and started to give away its gains. Crude prices tumbled over 11% last week.
Pressure has built on oil prices as OPEC+ reportedly prepares for a fourth bumper oil supply hike of 411,000 bpd beginning in August.
The group's leader Saudi Arabia wants to reclaim the market share it ceded to US shale drillers and other rival oil-producing nations. Their upcoming meeting on July 6th will reveal their collective decision.
Reports convey that Russia is also willing to accept another output boost.
Traders are concerned as it could create a swelling in supply and prevent any upside in oil prices.
On the supply side, the US active drilling rig counts for both oil and gas have dropped, with oil rigs falling by 47 in comparison to a year ago.
On the demand side, due to sluggish manufacturing activity, leading crude oil importer China is expected to cut down its oil demand.
On the monetary front, a decision on interest rates by the Federal Reserve and a final decision on tariff imposition by Trump are expected to emerge clearer in the second week of July.
Analysts state that this could give a sense on which way the economy moves and could impact the US dollar as well as dollar-denominated commodities.
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