Oil prices sank to four-year lows as OPEC+ ramps up output
The sell-off came in response to OPEC+’s weekend agreement to raise output by an additional 411,000 barrels per day (bpd) in June. This marks the third consecutive monthly increase,
Crude oil benchmarks slid to their lowest levels in four years on Monday, 5 May 2025, following a decision by OPEC+ to further ease production curbs—fuelling concerns that rising supply could exacerbate a global surplus at a time when demand faces mounting headwinds from trade tensions.
Brent loses $$1.06 or 1.7% to close at $60.23/barrel.
WTI fell $1.16 or 2% to settle at $57.13/barrel.
The sell-off came in response to OPEC+’s weekend agreement to raise output by an additional 411,000 barrels per day (bpd) in June. This marks the third consecutive monthly increase, bringing the total incremental supply for April through June to 960,000 bpd. According to Reuters, the group has now unwound 44% of the 2.2 million bpd in cuts originally implemented since 2022.
The timing of the output hike has intensified market anxiety, coinciding with escalating concerns over the US-led trade war. Protectionist policies are threatening to stifle global economic growth, undermine investor sentiment, and ultimately weaken oil demand.