Oil prices slip after gains led by OPEC+ move
- 05 Apr 2021
Gulf Today Report
Oil prices fell on Monday, overshadowing strong gains that were recorded due to the OPEC+ decision to reduce some of its productions cuts between May and July.
Brent crude futures for June fell 61 cents, or 0.9%, to $64.25 a barrel by 04:05 GMT while US West Texas Intermediate crude for May was at $60.92 a barrel, down 53 cents, or 0.9%.
The Organization of the Petroleum Exporting Countries, Russia and their allies, a group known as OPEC+, agreed to ease production curbs by 350,000 barrels per day (bpd) in May, another 350,000 bpd in June and further 400,000 bpd or so in July.
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The OPEC+ decision was made after the US administration called on Saudi Arabia to keep energy affordable for consumers irrespective of demand worries due to lockdown in parts of Europe.
Most of the increase in supplies will come from Saudi Arabia, which said it was phasing out its extra voluntary cuts by July, a move that will add 1 million bpd.
Following that, Saudi Aramco raised official selling prices (OSPs) for May to Asia on Sunday.
