U.S. oil costs tumble after OPEC+ agrees to surge manufacturing in June

U.S. crude oil futures fell greater than 4% on Sunday, after OPEC+ agreed to surge manufacturing for a second month.

U.S. crude was down $2.49, or 4.27%, to $55.80 a barrel shortly after buying and selling opened. World benchmark Brent fell $2.39, or 3.9%, to $58.90 per barrel. Oil costs have fallen greater than 20% this yr.

The eight producers within the group, led by Saudi Arabia, agreed on Saturday to improve output by one other 411,000 barrels per day in June. The choice comes a month after OPEC+ stunned the market by agreeing to surge manufacturing in Could by the identical quantity.

The June manufacturing hike is almost triple the 140,000 bpd that Goldman Sachs had initially forecast. OPEC+ is bringing greater than 800,000 bpd of extra provide to the market over the course of two months.

Oil costs in April posted the most important month-to-month loss since 2021, as U.S. President Donald Trump’s tariffs have raised fears of a recession that may gradual demand on the similar time that OPEC+ is shortly rising provide.

Oilfield service companies akin to Baker Hughes and SLB expect funding in exploration and manufacturing to decline this yr because of the weak worth atmosphere.

“The prospects of an oversupplied oil market, rising tariffs, uncertainty in Mexico and exercise weak spot in Saudi Arabia are collectively constraining worldwide upstream spending ranges,” Baker Hughes CEO Lorenzo Simonelli stated on the corporate’s first-quarter earnings name on April 25.

Oil majors Chevron and Exxon reported first-quarter earnings final week that fell in comparison with the identical interval in 2024 resulting from decrease oil costs.

Goldman is forecasting that U.S. crude and Brent costs will common $59 and $63 per barrel, respectively, this yr.