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Key Takeaways
- Oil prices dropped on Monday after the Organization of the Petroleum Exporting Countries, its allies and the United States agreed to increase production 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 have recently been at $60.48, while West Texas Intermediate has been at around $57.41. This is a drop of about 1%.
Oil prices dropped on Monday after the Organization of Petroleum Exporting Countries, along with its allies, agreed to increase output again in the month of June. This sparked concerns about a possible oversupply as markets grappled with the uncertainties of the 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. The group had agreed last month to increase production by 411,000 barrels daily, which is equivalent to three monthly increments.
Brent crude futures have recently been at $60.60 per barrel, while West Texas Intermediate Futures were at around $57.55, both of which are down about 1%.
Early in March, the group announced plans to increase crude production gradually beginning in April. This will end a voluntary program that was started nearly two years ago, to prop up oil price. The group had adopted a voluntary production cut policy of 2.2 million barrels a day (B/D).
