Crude oil prices started the week on a downward trajectory as markets braced for another round of production increases from OPEC+, adding to a growing global supply.

According to preliminary reports, the oil-producing alliance is expected to raise output by 411,000 barrels per day next month, bringing the total increase for the year to 1.78 million barrels daily. This anticipated supply boost has already begun to weigh on market sentiment.

At the time of writing, Brent crude was trading at $67.63 per barrel, while West Texas Intermediate (WTI) stood at $65.23 per barrel. The price dip followed a Reuters report over the weekend indicating that OPEC+ plans to extend its production additions into August.

Adding further downward pressure is the easing of geopolitical tensions. The recent Israel-Iran ceasefire has effectively removed the so-called "wartime premium" that had been propping up oil prices in previous weeks.

“We do think the group is most likely to still go ahead with the August accelerated unwinding,” said Richard Bronze, an analyst at Energy Aspects, as quoted by Reuters.

OPEC+ is scheduled to meet this Sunday to finalize production plans for next month. According to Reuters, unnamed sources have suggested the alliance may even increase the size of the August output boost, a move that could further dampen oil prices in the short term.

As the global energy market remains sensitive to supply signals and geopolitical developments, all eyes will be on the upcoming OPEC+ meeting and its potential impact on oil price dynamics.