Brand of the Group of the Petroleum Exporting Nations (OPEC)
Andrey Rudakov | Bloomberg | Getty Photographs
U.S. crude oil futures fell greater than 1% on Monday, after OPEC+ agreed to surge manufacturing for a second month.
U.S. crude was down 70 cents, or 1.2%, at $57.59 a barrel. International benchmark Brent fell 69 cents, or 1.1%, to $60.60 per barrel. Oil costs have fallen greater than 20% this yr.
The eight producers within the group, led by Saudi Arabia, agreed on Saturday to extend output by one other 411,000 barrels per day in June. The choice comes a month after OPEC+ shocked the market by agreeing to surge manufacturing in Could by the identical quantity.
The June manufacturing hike is almost triple the 140,000 bpd that Goldman Sachs had initially forecast. OPEC+ is bringing greater than 800,000 bpd of further provide to the market over the course of two months.
Oil costs in April posted the largest month-to-month loss since 2021, as U.S. President Donald Trump’s tariffs have raised fears of a recession that can gradual demand on the similar time that OPEC+ is rapidly rising provide.
“Our key conviction stays that prime spare capability and excessive recession threat skew the dangers to grease costs to the draw back regardless of comparatively tight spot fundamentals,” Goldman analyst Daan Struyven instructed shoppers in a Sunday word. The funding financial institution is forecasting that U.S. crude and Brent costs will common $56 and $60 per barrel, respectively, this yr.
Oilfield service companies resembling Baker Hughes and SLB expect funding in exploration and manufacturing to say no this yr because of the weak worth setting.
“The prospects of an oversupplied oil market, rising tariffs, uncertainty in Mexico and exercise weak spot in Saudi Arabia are collectively constraining worldwide upstream spending ranges,” Baker Hughes CEO Lorenzo Simonelli mentioned on the corporate’s first-quarter earnings name on April 25.
Oil majors Chevron and Exxon reported first-quarter earnings final week that fell in comparison with the identical interval in 2024 as a result of decrease oil costs.
