Oil prices fell over $2 per barrel in early Asian trading due to OPEC+’s decision to accelerate oil output hikes. Brent crude futures dropped $2.04 to $59.25 a barrel, while U.S. West Texas Intermediate crude fell to $56.19 a barrel. OPEC+ agreed to increase June production by 411,000 barrels per day, adding to previous hikes in April and May. This represents a 44% unwinding of the 2.2 million barrels per day cut agreed upon since 2022. Analysts warn that the global supply/demand balance may shift toward surplus. Barclays lowered its Brent forecast for 2025 and 2026 due to OPEC+’s accelerated phase-out of cuts. Tensions in the Middle East also rose after Israeli Prime Minister Benjamin Netanyahu vowed retaliation against Iran following a missile incident near Israel’s main airport.
— new from Reuters
