WTI price trades flat around $64.50 in Monday’s Asian session.
Israel-Iran ceasefire and the prospect of more OPEC+ supply weigh on the WTI price.
OPEC+ is set to raise August output by another 411,000 bpd.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $64.50 during the Asian trading hours on Monday. The WTI price trades on a flat note amid an easing of geopolitical tensions in the Middle East and the prospect of another OPEC+ output hike in August.
The Israel-Iran ceasefire eases geopolitical risks in the Middle East as investors expect a truce between both countries will reduce the risk of oil supply disruptions in the region. This, in turn, could drag the WTI lower in the near term. The market has stripped out most of the geopolitical risk premium built into the price following the Iran-Israel ceasefire, said IG markets analyst Tony Sycamore.
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) said the group was set to boost production by 411,000 barrels per day in August, following similar-size output increases for May, June and July. OPEC+ is scheduled to meet on July 6, and this would be the fifth monthly hike since the group started unwinding production cuts in April.
However, the upbeat Chinese economic data might provide some support to the black gold, as China is the world's second-largest consumer of oil and gas. Data released on Monday showed that China’s official Manufacturing Purchasing Managers' Index (PMI) rose to 49.7 in June versus 49.5 prior. This figure came in line with the market consensus. Meanwhile, the NBS Non-Manufacturing PMI climbed to 50.5 in June, compared to May’s 50.3 and the 50.3 expected.
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