Oil prices slumped on Monday after OPEC+ countries announced a sharp production increase despite oversupply concerns and growing fears that US President Donald Trump's trade war could weaken demand.
Saudi Arabia, Russia and six other members of the oil cartel announced over the weekend an output increase of 411,000 barrels a day for June, a month after a similar move had already caused prices to fall. The price of crude has also been sliding because of fears of a global economic slowdown on the back of Trump's tariff onslaught. The OPEC+ move "confirms a stark turnaround away from the production cuts that have persisted since 2022", said a Deutsche Bank research note.
Some analysts pointed to pressure from Trump to lower prices and expectations of declining Iranian oil exports amid tighter sanctions, as possible reasons for the unexpected move.
