Oil prices steady on easing Middle East risks
By Seher Dareen
LONDON (Reuters) -Oil prices held steady on Monday as Middle East risks eased while a possible OPEC+ output increase in August and uncertainty over the global demand outlook weighed on the market.
Brent crude futures were flat at $67.76 a barrel at 0918 GMT, ahead of the August contract's expiry later on Monday. The more active September contract was up 17 cents at $66.97.
U.S. West Texas Intermediate crude edged up by 9 cents, or 0.1%, to $65.61 a barrel.
The Brent and WTI benchmarks posted their biggest weekly declines since March 2023 last week but are set for a second consecutive monthly gain of more than 5%.
A 12-day war that started with Israel targeting Iran's nuclear facilities on June 13 sent prices above $80 a barrel before sliding back to $67.
The market is back to a range-trading environment that is likely to continue until new economic growth concerns emerge or supply disruptions materialise, said UBS analyst Giovanni Staunovo.
Four OPEC+ sources told Reuters last week that the group was set to boost production by 411,000 barrels per day (bpd) in August after similar increases for May, June and July.
If OPEC opted for another output increase in August, global and OECD oil inventories would start swelling, potentially preventing any further upside in prices, PVM Associates analyst Tamas Varga said in a note.
The oil producer group is set to meet on July 6.
However, some market tightness remains despite rising output, with lower than expected production increases while exports from OPEC+ countries have remained stable, Staunovo added.
A Reuters survey found that OPEC oil output rose in May but gains were limited by cuts by countries that had previously exceeded their quotas while Saudi Arabia and the United Arab Emirates made smaller increases than allowed.
Bearish pressure is likely to persist on concerns over slower global oil demand, particularly from leading crude importer China, some analysts say.
Uncertainty around global growth continues to cap prices, said Priyanka Sachdeva, senior market analyst at Phillip Nova.
(Reporting by Seher Dareen in London and Florence Tan and Sam Li in SingaporeEditing by David Goodman)
With the somewhat reduced political tensions in Middle East, oil prices reveal a sense of stability but not yet reaching full recovery.
As the Middle East tensions seem to calm, traders anticipate oil price stability as geopolitical risks gradually decrease.
The latest stabilizing trend in oil prices can be attributed to the mitigated risks from recent de-escalation efforts seen across some Middle Eastern regions, which has helped alleviate market concerns over supply disruptions.
With Middle East tensions gradually subsiding, the steady nature of oil prices serves as an encouraging sign for global markets seeking a respite from regional uncertainties.
The recent stability in oil prices reflects a promising calm amid the easing tensions between major Middle East actors, providing much-needed relief to global markets.
As the Middle East tensions continue to de-escalate, delivering a sense of security for global oil markets and freeing up supply channels from potential disruptions which may have caused volatility in prices previously.
The stability in oil prices witnessed recently is testament to the positive influence of diminishing Middle East tensions, which has allowed markets and investors a much-needed breathing space.
With the recent easing of tension in Middle Eastern oil-rich regions, global crude market prices have remained stable amidst reduced geopolitical risks.
In response to the moderation in Middle East risks, there has been a positive stabilizing trend among oil prices as increased security clears many fears of unforeseen disruptions.
