Tell us what you think: Where will oil be trading at the end of August?

Key Points
  • U.S. West Texas Intermediate declined more than 7 percent in the month of July.
  • The drop in prices last month had much to do with U.S. politics.
Pump jacks and wells are seen in an oil field on the Monterey Shale formation, March 23, 2014, near McKittrick, Calif.
Getty Images

U.S. West Texas Intermediate crude oil declined more than 7 percent in the month of July, recording its worst monthly drop in two years.

Plenty of the big price moves seen last month were tied to U.S. politics, from President Donald Trump's tweets about Saudi Arabia agreeing to increase oil production (a statement on which the White House later backpedaled) to Treasury Secretary Steven Mnuchin's comments on how the administration would consider allowing some oil buyers to gradually reduce their purchases from Iran.

Ahead, the U.S. is expected to make an announcement on renewed sanctions on Iran on Monday, Reuters reported.

On Monday, markets were also focused on a reported dip in Saudi output last month and news of U.S. energy companies cutting oil rig counts in the week that ended on August 3.

U.S. WTI crude futures traded around $68.65 per barrel in Asia afternoon trade. Brent crude futures, meanwhile, traded at $73.38.

— CNBC's Tom DiChristopher contributed to this report.