OPEC+ Increases Production Again! Oil Plummets to Four-Year Low, Wall Street Oil Price Forecasts Plummet!
OPEC+ has increased production for two consecutive months. This has put downward pressure on oil prices. Major Wall Street banks are lowering their target prices.
On Monday, oil prices dropped sharply. WTI (USOIL) fell by 5.2%. Brent crude dropped by 4.6%. Both hit their lowest levels since September 2021.
Last Saturday, six OPEC+ members decided to accelerate oil production again. Starting in June, daily output will increase by 410,000 barrels. In April, OPEC+ made a similar decision, tripling the planned increase for May.
Previously, OPEC+, led by Saudi Arabia and Russia, aimed to boost prices through production cuts. This strategy allowed competitors to gain market share. Now, OPEC+ is forced to increase production, putting more pressure on prices.
ICIS oil analyst Ajay Parmar said, "The increase in OPEC+ production cannot be absorbed by the market. Demand growth is weak. prices will likely fall further."
Concerns about oversupply have led many Wall Street banks to cut their oil price forecasts. Barclays lowered its 2025 target price for Brent crude by $4 to $66 per barrel. ING cut its forecast by $5 to $65 per barrel.
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