Oil prices dropped sharply on Monday in Asian trade after the OPEC+ group signaled plans to ramp up production in the coming months, sparking concerns of a potential supply glut. The news weighed heavily on crude prices, which were already facing steep losses in 2025.
OPEC+ Announces Production Hike
Brent oil futures for June fell 3.6%, settling at $59.10 per barrel, while West Texas Intermediate (WTI) crude futures dropped 3.7%, reaching $55.68 per barrel by 20:37 ET (00:37 GMT). This sharp decline in oil prices followed OPEC+’s decision over the weekend to raise output by 411,000 barrels per day starting in June.
The increase, which is nearly three times the initial amount expected, will see key members such as Saudi Arabia and Russia ramp up production. This shift points to a substantial rise in global oil supplies, potentially offsetting concerns about supply disruptions in the Middle East and contributing to downward pressure on crude prices.
OPEC+’s Response to Trump’s Oil Production Push
The move by OPEC+ also reflects the group’s alignment with U.S. President Donald Trump’s calls for increased oil production and lower prices. Trump has repeatedly urged the oil cartel to boost output to ensure that oil prices remain affordable for global markets. However, despite this effort to meet such demands, the increase in production could lead to further weakening of oil prices, especially if demand fails to keep pace with the higher supply.
Middle East Tensions and Impact on Oil Markets
Although tensions in the Middle East, especially between Israel and Iran, remain elevated, the OPEC+ production increase seems to have negated some of the price support that geopolitical tensions might have caused. Despite threats from Israeli Prime Minister Benjamin Netanyahu of more action against Iran, the promise of higher oil supplies has become a dominant factor in the market.
For those monitoring global oil supply trends and geopolitical influences on crude prices, the Commodities API provides real-time data and insights into oil prices, helping investors assess market conditions.
