Oil Prices Pare Some Earlier Losses As OPEC+ Boosts Output
Oil prices fell on Monday, but pared some earlier losses, after the OPEC+ oil cartel signaled over the weekend that it would further increase output in the coming months.
The prospect of higher supplies and weaker demand weighed on crude, which has suffered steep losses so far in 2025. The declines brought oil back near a four-year low hit in early April.
Brent crude for June fell 1.1% to $60.60 a barrel, while West Texas Intermediate crude fell 1.2% to $57.14 a barrel by 7:43 a.m. EST (11:43 GMT).
OPEC+ announces bigger-than-expected June output increase
The Organization of the Petroleum Exporting Countries and its allies — the group known as OPEC+ that produces the bulk of global oil output — agreed to raise output by 411,000 barrels per day starting in June during a meeting over the weekend.
The increase is nearly three times the volume initially signaled by OPEC+, and will see key member nations Saudi Arabia and Russia increase output. Further oil supply could rise as a result of the move, which could pressure crude prices and offset upward pressure from potential supply disruptions in the Middle East.
Crude has had a relatively weak start to 2025, as rising global economic uncertainty darkens the price outlook. The main driver of the trend has been U.S. President Donald Trump’s trade agenda, which has seen him lift — and then partially suspend — U.S. tariffs on a number of countries.
Despite a 90-day reprieve on most of his high tariffs, Trump has left at least 145% of levies on major Chinese oil importers in place, drawing retaliatory tariffs of 125% from Beijing and aggravating concerns about a deepening trade war between the world’s two largest economies.
Traders have seen little relief from the U.S., and China has shown some openness to talks in recent days. On Sunday, Trump said he had no plans to speak to Chinese President Xi Jinping this week, though he noted that U.S. officials have been in contact with Beijing.
Despite a 90-day reprieve on most of his high tariffs, Trump has left at least 145% of levies on major Chinese oil importers in place, drawing retaliatory tariffs of 125% from Beijing and aggravating concerns about a deepening trade war between the world’s two largest economies.
Traders have seen little relief from the U.S., and China has shown some openness to talks in recent days. On Sunday, Trump said he did not plan to speak with Chinese President Xi Jinping this week, though he noted that U.S. officials have been in contact with Beijing.
Source: Investing.com
