(MENAFN) Oil prices saw a modest uptick on Monday, as traders sought to capitalize on last week's declines while a weaker US dollar fueled demand.

Brent crude, the global benchmark, gained 0.37%, reaching $66.58 per barrel at 10:32 a.m. local time (0732 GMT), up from $66.33 at the close of the previous session.

Meanwhile, US benchmark West Texas Intermediate (WTI) climbed approximately 0.26%, hitting $64.71 per barrel, compared to $64.54 on Friday.

The market had experienced its most significant weekly drop since March 2023, as geopolitical tensions in the Middle East began to subside. However, the declining value of the US dollar against other currencies is now helping to buoy oil prices, as it makes crude more attractive to investors.

The dollar index slipped 0.3% to 97.2 on Monday, hovering near a three-year low. This drop was driven by ongoing criticism of the Federal Reserve from US President Donald Trump.

A weaker dollar is expected to drive up demand by making oil cheaper for purchasers using other currencies.

At the same time, news that the OPEC+ alliance, comprising the Organization of the Petroleum Exporting Countries (OPEC) and key non-OPEC nations, plans to raise production by 411,000 barrels per day in August is putting a lid on price increases.

OPEC+ members, including Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman, are set to finalize their production targets at their upcoming meeting on July 6.

This comes after the group began unwinding voluntary production cuts in April, with increases in May, June, and July. The planned August hike will mark the fifth consecutive monthly production boost.

On the demand front, ongoing concerns about China, the world’s largest importer of crude, are still exerting downward pressure on prices. China’s June manufacturing Purchasing Managers' Index (PMI) came in at 49.7, slightly surpassing forecasts, but still signaling contraction in the sector.

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