Oil prices fell at the start of trading on Monday as easing tensions in the Middle East and rising supply from producing countries continued to weigh on global energy markets.

Oil Prices Open Lower

With the opening of global energy markets on Monday, both major oil benchmarks recorded losses.

Brent crude fell 0.40% to trade at $71.50 per barrel, while U.S. West Texas Intermediate (WTI) crude declined 0.20%, reaching $68.45 per barrel.

Factors Behind the Price Decline

According to an analysis by Oilprice, several factors contributed to the drop in oil prices, including reduced geopolitical tensions in the Middle East and the normalization of oil shipments through the Strait of Hormuz.

The analysis also cited rising oil inventories in consuming countries, weaker global energy demand, and increased supply as key factors putting downward pressure on prices.

OPEC Output and Gulf Exports Increase

A Reuters survey showed that OPEC's total oil production increased by 3.3 million barrels per day (bpd) in June, bringing total output to 19.5 million bpd.

At the same time, oil exports from the Arab Gulf countries rose by more than 3 million barrels per day compared with May, reaching 10 million bpd. Despite the increase, exports remain about 40% below pre-war levels.