U.S. crude oil futures are down by 2% today, lifting its year-to-date (YTD) loss to nearly 20%. Over the weekend, the OPEC+, which includes members of the Organization of the Petroleum Exporting Countries (OPEC) as well as several other oil-producing countries, agreed to increase oil production for a second consecutive month.
OPEC+ to Increase Daily Oil Production by 411,000 Barrels
In June, OPEC+ will increase daily oil production by 411,000 barrels. This follows the groups’ decision to increase May daily oil production by the same amount.
“Our key conviction remains that high spare capacity and high recession risk skew the risks to oil prices to the downside despite relatively tight spot fundamentals,” wrote Daan Struyven, Goldman’s head of oil research, in a note to clients.