Oil plunges to $60, a 2021 low, after OPEC+ increases output

Oil prices are struggling, and the situation worsened this Monday. The reason? The OPEC+ alliance, led by Saudi Arabia and Russia, decided on Saturday to increase its oil supply by 411,000 barrels per day starting June 1, causing the price of crude oil to fall 2% to $60.05, a 2021 low.

Last Saturday, OPEC+ reported that, in view of the current strong market fundamentals , reflected in low oil inventories, Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman, "will implement an upward adjustment of 411,000 barrels per day in June 2025."

This volume is three times the amount they had initially agreed upon as the monthly increase for each month.

Last Friday, Brent crude for July delivery closed lower, falling 1.35% on the London futures market to $61.29. Meanwhile, the price of West Texas Intermediate (WTI) crude also fell sharply this Monday, falling 3.65% before the official market opening to $56.16.

The eight OPEC+ countries will meet monthly to review market conditions, compliance, and compensation. They plan to meet again on June 1 to decide on July production levels.