WATCH THE VIDEO HERE Crude oil continued to slide as moves by the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) to expedite its output hikes stoked fears about rising global supply at a time when the demand outlook is uncertain. The price of Brent crude closed at $60.23 a barrel during the session after it shed $1.06 or 1.7 per cent, while the US West Texas Intermediate (WTI) crude ended at $57.13 a barrel after declining by $1.16 or 2 per cent. On Saturday, OPEC+ agreed to further speed up oil production hikes for a second consecutive month, raising output by 411,000 barrels per day in June. The June increase by eight participants in the OPEC+ group will take the total combined hikes for April, May and June to 960,000 barrels per day, representing a 44 per cent unwinding of the 2.2 million barrels per day of various cuts agreed on since 2022. Reuters also reported that the group could fully unwind its voluntary cuts by the end of October if members do not improve compliance with their production quotas. The market has faced heavy downturn since last week after Saudi Arabia signaled it could cope with a prolonged lower price environment, a decision that offset optimism on the demand side that US-China tariff talks could happen. Reuters reported that the production increase is as much about challenging US shale supply as it is to penalize members that have benefited from higher prices while flouting their production limits. Saudi Arabia is believed to be pushing OPEC+ to speed up the unwinding of earlier output cuts to punish fellow members Iraq and Kazakhstan for poor compliance with their production quotas. Market analysts including ING and Barclays have also lowered their Brent crude forecasts following the OPEC+ decision. Barclays reduced its Brent forecast by $4 to $66 a barrel for 2025 and by $2 to $60 for 2026, while ING expects Brent to average $65 this year, down from $70 previously. Standard Chartered has also cut its 2025 forecast by $16 per barrel to $61 per barrel and its 2026 forecast by $7 per barrel to USD 78per barrel . The bank contends that the Donald Trump administration will have a hard time convincing the markets that its tariff-based policies are not recessionary.
Crude Oil Tumbles Further as OPEC+ Hike Stokes Fears
