WTI Oil struggles to return above $65.00 amid expectations of another supply hike

• Oil prices remain flat around $65 following a $12 sell-off last week..
• OPEC+ countries are widely expected to increase output for the fourth consecutive month in August.
• The easing tensions in the Middle East are posing additional bearish pressure on Crude prices.
  

WTI Crude Prices are picking up from two-week lows, but they remain about $12 below the previous Monday highs, as the peace in the Middle East and market expectations that OPEC+ countries will agree on another supply hike this week, are keeping upside attempts limited.

Trading action is showing minor gains on Monday, yet with prices constrained within the previous days' range around $65.00, with the $66.00 level capping bulls for now.

Higher supply and lower demand expectations are weighing on prices

Investors are anticipating a highly likely agreement to increase supply by 411,000 barrels per day for the fourth consecutive time this year, which, in the context of a soft global economic outlook, is likely to lead to an oversupply

In China, the NBS Manufacturing PMI revealed that factory activity contracted for the third consecutive month in June, weighed by weak demand and an uncertain trade context. The US economy contracted in the first quarter of the year, and the Eurozone is struggling. These numbers point to a weak demand for Oil in the coming months

Furthermore, the ongoing peace between Israel and Iran has eased concerns about a potential disruption of global supply if the conflict spilled into a full-blown regional war. This is adding negative pressure on prices.