Key Takeaways
- Oil prices dropped Monday, as the Organization of the Petroleum Exporting Countries and its allies agreed to boost output again in June.
- OPEC+, a grouping led by Saudi Arabia and Russia, over the weekend agreed to add 411,000 barrels a day next month.
- Brent crude futures were recently at $60.48 per barrel, while West Texas Intermediate futures were at about $57.41, both down around 1%.
Oil prices dropped Monday, as the Organization of the Petroleum Exporting Countries and its allies agreed to boost output again in June, raising concerns about a potential oversupply at a time when markets are grappling with the uncertainties of a global trade war.
Over the weekend, OPEC+, a grouping led by Saudi Arabia and Russia, agreed to add 411,000 barrels a day next month. That decision came after the group last month agreed to add 411,000 barrels a day “equivalent to three monthly increments,” essentially speeding up its program of unwinding its output cuts.
Brent crude futures were recently at $60.60 per barrel, while West Texas Intermediate futures were at about $57.55, both down around 1%.
In early March, the group affirmed plans to gradually increase crude production beginning in April, ending a voluntary program it started almost two years ago to prop up oil prices. The group had a policy of voluntary production cuts of 2.2 million barrels per day (B/D).
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