By Giulia Petroni
The Organization of the Petroleum Exporting Countries and its allies agreed to make a larger-than-expected oil output hike in May, prompting oil prices to extend previous losses.
After a meeting held online on Thursday, eight OPEC+ countries said they will increase output by 411,000 barrels a day next month--the equivalent of three monthly increments--citing "healthy market fundamentals" and a "positive market outlook."
The raise is part of a broader plan to gradually unwind production cuts totaling 2.2 million barrels a day starting this month.
In afternoon trade in Europe, Brent crude slumped 6.4% to $70.17 a barrel, while West Texas Intermediate was down 6.9% to $66.80 a barrel. Losses were also fueled by fears that U.S. President Trump's latest tariff blitz could dampen global economic growth and demand for oil.
OPEC+ members reiterated the gradual increases might be paused or reversed subject to evolving market conditions. They also confirmed their intention to fully compensate for any volume produced above quotas since January 2024 and to submit updated compensation plans by April 15.
The eight countries said they will meet on May 5 to discuss production levels for June.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
April 03, 2025 09:15 ET (13:15 GMT)
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