Oil drops below $64

LONDON:

Oil fell below $64 a barrel on Monday as rising supply from OPEC+ and higher Iranian output countered signs of a strong economic rebound in the United States and expectations of a wider demand recovery in 2021. The Organisation of the Petroleum Exporting Countries and allies, known as OPEC+, agreed on Thursday to monthly production hikes from May to July. OPEC member Iran, exempt from making voluntary cuts, is also boosting supply. Brent crude for June fell $1.44, or 2.2%, to $63.42 a barrel by 1425 GMT. US West Texas Intermediate crude for May dropped $1.60, or 2.6%, to $59.85. “The OPEC+ decision, perhaps nudged along by increasing Iranian production heading to China, probably means we have seen the best of oil rally now for the next few months,” Jeffrey Halley of brokerage Oanda said.

Published in The Express Tribune, April 6^th, 2021.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.