Organization of oil exporting countries (OPEC)
Andrey Rudakov | Bloomberg | Getty images
US crude oil-up-to-date contracts have dropped more than 4% on Sunday after OPEC + agreed to increase production for a second month.
We gross fell by $ 2.49, or 4.27%, at $ 55.80 per barrel shortly after the opening of trading. World benchmark Brent dropped by $ 2.39, or 3.9%, at $ 58.90 per barrel. Oil prices have dropped more than 20% this year.
The group's eight producers, led by Saudi Arabia, agreed on Saturday to increase the production of 411,000 additional barrels per day in June. The decision occurs a month after OPEC + surprised the market by agreeing to increase the production in May of the same amount.
The June production hike is almost triple in 140,000 B / D that Goldman Sachs had originally planned. OPEC + provides more than 800,000 B / d additional supply on the market for two months.
The prices of oil in April have displayed the highest monthly loss since 2021, because the prices of US President Donald Trump have raised a recession that will slow demand at the same time as OPEC + quickly increases the supply.
Oil field service companies such as Baker Hughes And Slb expect the investment in exploration and production to decrease this year due to the low price environment.
“The prospects for an excess petroleum market, the rise in prices, the uncertainty in Mexico and the weakness of the activities in Saudi Arabia collectively force the international levels of upstream expenditure,” said Baker Hughes CEO Lorenzo Simoneli, when calling the company's first quarter on April 25.
The oil majors Chevron and Exxon published profits in the first quarter last week which fell compared to the same period in 2024 due to the drop in oil prices.
Goldman plans that the prices of the crude and the American Brent on average $ 59 and $ 63 a barrel, respectively, this year.
