Oil prices declined 1 per cent on Monday, driven by reduced geopolitical tensions in the Middle East and expectations of increased OPEC+ production in August.

Brent crude futures dropped 66 cents, or 0.97 per cent, to $67.11 per barrel with the August contract nearing expiry.

The September contract fell 83 cents to $65.97.

U.S. West Texas Intermediate crude also slid, down 94 cents, or 1.43 per cent, to $64.58 per barrel.

The price drop follows a volatile period sparked by a 12-day conflict that began June 13, when Israel targeted Iran’s nuclear facilities, prompting a U.S. strike and pushing Brent above $80 per barrel.

Prices later fell to $67 after President Donald Trump announced a ceasefire between Iran and Israel. “The market has largely removed the geopolitical risk premium,” said IG markets analyst Tony Sycamore.

Adding pressure, OPEC+—comprising the Organization of the Petroleum Exporting Countries and allies—is poised to increase output by 411,000 barrels per day in August, marking its fifth consecutive monthly hike since April, according to four OPEC+ delegates.

The group will meet on July 6 to finalize plans.

Despite the daily decline, both Brent and WTI are on track for a second straight monthly gain of over 5% in June, though last week saw their steepest weekly drop since March 2023.