Oil prices fall after prior gains driven by OPEC+ move

Oil prices slipped on Monday, paring strong gains made in the previous session that was driven by the decision by OPEC+ to gradually ease some of its production cuts between May and July. Brent crude futures for June fell 96 cents, or 1.5%, to $63.90 a barrel by 0615 GMT while U.S. West Texas Intermediate crude for May was at $60.56 a barrel, down 89 cents, or 1.5%.

Both contracts settled up more than $2 a barrel on Thursday as investors viewed the OPEC+ decision as an affirmation of demand-led recovery, and optimism was boosted by U.S. President Joe Biden’s $2 trillion infrastructure spending plan. Markets were closed on Friday because of the Easter holiday.

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. The decision came after the new U.S. administration called on Saudi Arabia, the world’s top oil exporter, to keep energy affordable for consumers despite demand concerns as parts of Europe remained under lockdown while Japan could expand emergency measures as needed to contain a new wave of coronavirus infections.

Oil prices fall after prior gains driven by OPEC+ move, Reuters, Apr 5