The News
Oil prices tumbled after OPEC+ agreed to increase crude production for the first time since October 2022.
The oil producers’ group, which is led by Saudi Arabia and Russia, said on Monday it had agreed on a “gradual and flexible return” of 2.2 million barrels a day of oil production over the next year and a half.
Meanwhile, the price of Brent crude oil fell to a five-month low, the Financial Times reported.
The surprise move by OPEC+ followed calls from US President Donald Trump to lower oil prices. However, the plan was “locked in well before Trump took office,” commodities analyst Amena Bakr wrote in Semafor Gulf.
Still, OPEC+ is keeping an eye on Trump’s demands and his policy direction, especially his new tariffs on oil imports from Canada and Mexico. Analysts have warned the duties could tighten supply options for refiners and push US gas prices higher.
“Consumers are about to get caught between tariffs, refinery bottlenecks, and seasonal price hikes,” OilPrice.com wrote.
