{"id":14098,"date":"2025-05-05T07:10:08","date_gmt":"2025-05-05T07:10:08","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=14098"},"modified":"2025-05-05T07:10:08","modified_gmt":"2025-05-05T07:10:08","slug":"brent-crude-oil-price-fell-to-59-08-a-barrel","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/14098\/","title":{"rendered":"Brent crude oil price fell to $59.08 a barrel"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Oil prices fell more than $2 a barrel in Asian trade on Monday as OPEC+ is set to further speed up oil output hikes, spurring concerns about more supply coming into a market clouded by an uncertain demand outlook.<\/p>\n

Brent crude futures dropped $2.21, or 3.61%, to $59.08 a barrel by 0653 GMT while U.S. West Texas Intermediate crude was at $56.00 a barrel, down $2.29, or 3.93%.<\/p>\n

Both contracts touched their lowest since April 9 at Monday’s open after OPEC+ agreed to accelerate oil production hikes for a second consecutive month, raising output in June by 411,000 barrels per day (bpd).<\/p>\n

The June increase from the eight will take the total combined hikes for April, May and June to 960,000 bpd, representing a 44% unwinding of the 2.2 million bpd of various cuts agreed on since 2022, according to Reuters calculations.<\/p>\n

“The May 3 OPEC+ decision to raise production quotas another 411,000 bpd for June adds to the market expectation that the global supply\/demand balance is moving to a surplus,” Tim Evans, founder of Evans on Energy said in a note.<\/p>\n

The group could fully unwind its voluntary cuts by the end of October if members do not improve compliance with their production quotas, OPEC+ sources told Reuters.
\nOPEC+ sources have said Saudi Arabia is pushing OPEC+ to accelerate the unwinding of earlier output cuts to punish fellow members Iraq and Kazakhstan for poor compliance with their production quotas.<\/p>\n

The 6-month Brent price spread flipped to a contango of 11 cents a barrel for the first time since December 2023, with oil cheaper now than in future months, reflecting expectations that the market is amply supplied.<\/p>\n

Barclays and ING have also lowered their Brent crude forecasts following the OPEC+ decision.<\/p>\n

Barclays reduced its Brent forecast by $4 to $66 a barrel for 2025 and by $2 to $60 a barrel for 2026, while ING expects Brent to average $65 this year, down from $70 previously.<\/p>\n

“We now expect OPEC+ to phase out the additional voluntary adjustments by October 2025 but also expect slightly slower U.S. oil output growth,” Barclays analyst Amarpreet Singh said in a note.<\/p>\n

The net impact of the higher OPEC+ output and lower U.S. output has increased Barclays’ estimate of supply in 2025 by 290,000 bpd for 2025 and 110,000 bpd for 2026, he said.<\/p>\n

ING analysts led by Warren Patterson said the global oil balance is expected to move deeper into surplus throughout 2025.<\/p>\n

“The oil market has been dealing with significant demand uncertainty amid tariff risks. This change in OPEC+ policy adds to uncertainty on the supply side,” they added.<\/p>\n

Meanwhile, tensions flared in the Middle East after Israeli Prime Minister Benjamin Netanyahu vowed to retaliate against Iran for the Tehran-backed Houthi group firing a missile that landed near Israel’s main airport.<\/p>\n

Iran’s Defence Minister Aziz Nasirzadeh said on Sunday that Tehran would strike back if the United States or Israel attacked.<\/p>\n

Updated on