Oil drops below $64 as rising OPEC+, Iranian output weighs

IslamNews – Oil fell to below $64 a barrel on Monday as rising supply from OPEC+ and higher Iranian output countered signs of a strong economic rebound in the United States and expectations of a wider demand recovery in 2021.

The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, agreed on Thursday to monthly production hikes from May to July. OPEC member Iran, exempt from making voluntary cuts, is also boosting supply.

Brent crude for June fell $1.44, or 2.2%, to $63.42 a barrel by 1425 GMT. U.S. West Texas Intermediate crude for May dropped $1.60, or 2.6%, to $59.85.

“The OPEC+ decision, perhaps nudged along by increasing Iranian production heading to China, probably means we have seen the best of the oil rally now for the next few months,” Jeffrey Halley of brokerage OANDA said.

Source: Reuters