Oil drops as OPEC+ output hike looms – Danske Bank

Oil prices declined after reports emerged that OPEC+ is considering a major output increase in June, while Kazakhstan resists further production cuts to compensate for earlier overproduction. The internal discord threatens to undermine price stability, especially amid global economic uncertainty, Danske Bank's FX analysts report.

OPEC+ is mulling an additional big output hike in June

"The internal rift in OPEC+ continues to develop and yesterday oil prices fell on the news that the cartel is mulling an additional big output hike in June and further that Kazakhstan is not eager to cut output to make up for previous overproduction."

"As we have noted before, the changed internal dynamics in OPEC+ has removed the floor for oil prices. Should we see a renewed escalation of trade tensions or a deterioration of the global growth outlook for some other reason, oil prices could suffer a steep drop."