Prices of oil and gas were down with easing tensions in the Middle East and OPEC+ raising another terminal production in August.

Displays in oil and gas exchanges declined significantly on Monday with geopolitical stress decreasing in the Middle East and OPEC+ hinting at a possible increment in yield in August. The Brent crude futures dropped by 66 cents (0.97%) to reach 67.11 dollars per barrel, and the September contract was at 65.97 dollars per barrel. The West Texas Intermediate crude of the U.S. also fell by 94 cents (1.43%) to reach 64.58.

Although last week was the sharpest in terms of weekly decline since March 2023, the price of oil and gas is still likely to end June with more than a 5 percent addition in a span of one month. The recent 12-day Israeli-Iranian war had rallied Brent to above 80 before the ceasefire brokered by President Trump eliminated the majority of the geopolitical premium.

Analysts such as Tony Sycamore at IG Markets observed that much of the tension in the Middle East has now largely been discounted by the market.

Coupled with downward pressure, OPEC+ is poised to increase its production by 411,000 barrels per day in August, and it is the fifth straight monthly augmentation since April. This move is likely to be affirmed by the group during the July 6 meeting, which an implication on the figures has released on the oil and gas supply.

In the meantime, Baker Hughes announced that U.S. oil rigs decreased by six to 432 last week, the lowest since October 2021, and an indication of tightening in future productionin the United States.