Oil prices slipped 1% early Monday after OPEC+ agreed to accelerate output hikes, raising concerns about potential oversupply. Brent crude futures fell 67 cents, or 1%, to $67.63 a barrel by 2308 GMT, while U.S. West Texas Intermediate dropped $1.20, or 1.8%, to $65.80.
On Saturday, OPEC+—a coalition of OPEC members and allies—announced it will raise production by 548,000 barrels per day (bpd) in August, marking its first meeting since oil markets swung wildly after Israeli and U.S. attacks on Iran. The hike is a significant increase over the group’s prior monthly additions of 411,000 bpd in May-July and 138,000 bpd in April.
OPEC+ said its decision was based on a steady global economic outlook and strong market fundamentals, including low oil inventories, prompting the release of more barrels into the market.