Brent crude fell to $71.10 per barrel on Monday, sliding more than 1% as markets digested a dual supply-side shift.
The decline marks a continuation of the broader retreat from recent peaks, driven by the convergence of policy-driven output increases and stabilizing geopolitical logistics.
The primary headwind stems from OPEC+ agreeing to further increase its production targets starting in August.
This decision signals a deliberate move by the cartel to flood the market with additional barrels, directly countering the supply tightness that had previously supported higher prices.
Simultaneously, exports from key producers through the Strait of Hormuz are showing signs of recovery.
The normalization of shipping flows in this critical chokepoint reduces the risk premium that traders had been pricing into energy contracts amid earlier tensions.