Oil dipped over 1% on Monday amid OPEC output growth and steep price reductions by leading producer Saudi Arabia overcame concerns about growing geopolitical disruptions in the Middle East.

Brent crude slumped by 1.09% to $77.90 per barrel, meanwhile US WTI dropped 1.15% to $72.96 per barrel.

According to U.S. Secretary Antony Blinken, who is now visiting the Middle East, he stated that unless there is a coordinated peace effort, the Gaza crisis may expand throughout the region.

Meanwhile, according to Israeli Prime Minister Benjamin Netanyahu, the conflict will not end until Hamas is destroyed.

Reducing the impact of the war worries on prices increases, according to a survey conducted by Reuters, OPEC’s output increased by 70,000 barrels bpd for December to 27.88 million bpd.

In addition, according to Baker Hughes' weekly report, the number of oil drilling rigs in the United States increased by one to 501 the previous week.