Oil falls, Brent crude drops more than 2.5%

Oil prices continued to fall as the US market opened on Monday, to head for the third daily loss in 4 days, with Brent crude dropping more than 2.5% after OPEC+ decided to gradually increase oil production starting May, in tandem with Saudi Arabia’s decision to ease its voluntary output cut.

US crude fell more than 2.5% to $59.61, after opening at $61.25, and hit a day high at $61.38, and Brent crude fell 2.6% to $ 63.03, after opening at $64.72, and hit a day high at $65.14.

US crude gained 3.1% on Thursday, in the first gain out of 3 days, and Brent crude futures rose 2.4%, after the reveal of the new US economic stimulus plan.

Oil prices gained 0.6% last week, and posted the first weekly gain in a month, lifted by positive US demand outlook.

The OPEC-Plus coalition decided on Thursday to gradually increase oil production starting next May, with a hike of 1.15 million barrels per day distributed over 3 months.

The decision includes an increase of 350,000 bpd in May, a similar increase in June, and 450,000 bpd in July.

According to this decision, the current output cut will be reduced by 7.2 million barrels in April to 6.85 million barrels in May, and to 6.5 million barrels in June, and then to nearly 6 million barrels in July.

Saudi Arabia also stated that during that period it would also ease its 1 million bpd voluntary cut, and its production will increase by 250,000 barrels in May, then by 350,000 barrels in June, and by 400,000 barrels in July.

Saudi Energy Minister Prince Abdulaziz bin Salman urged OPEC Plus to be more cautious until the global economic recovery is certain.