** Australian energy stocks .AXEJ are down 0.5% after falling as much as 1% earlier in the session to hit lowest level since June 13

** Oil prices fell 1% as easing geopolitical risks in the Middle East and the prospect of another OPEC+ output hike in August boosted supply outlook O/R

** ASX 200 benchmark index .AXJO up 0.2%

** Energy sector major Woodside Energy WDS.AX down 0.9%

** YTD, sub-index up 0.7%; AXJO up 4.4%

(Reporting by Sherin Sunny in Bengaluru)

((Sherin.Sunny@thomsonreuters.com;))