Oil prices plummeted more than 5% on Monday, the biggest drop since March, as OPEC+ agreed to increase output. CL1! is down -6.72%.
- Brent oil traded at $ 69.68 a barrel, a $3.61 or 4.9% decline by 1405 GMT while U.S oil traded at $68.06 a barrel, a fall of $3.75 or 5.2%.
- Analysts have attributed the move by OPEC+ as a step towards free and increased production capacity by members.
- Oil prices were also dampened by concerns over weakened demand as Covid-19 cases rose globally.
- OPEC+ cut crude oil supply by 10 million barrels per day last year, causing prices to reduce to a negative metric. The members have eased controls with supply curbs now at 5.8 million bpd.