Oil prices have dropped to their lowest this year after OPEC+ announced it will restart some halted production, a move that may deepen the projected global surplus of crude. West Texas Intermediate (WTI) slid 2% to settle above $68 a barrel, while global benchmark Brent retreated below $72.
The decision comes as a surprise, following pressure from US President Donald Trump to lower oil prices. OPEC+ will increase production by 138,000 barrels a day in April, reversing previous postponements. The move is expected to upend expectations that the group would push back the restart amid projected supply surpluses later this year.
The surprise hike has hit shares of US energy producers, potentially restraining production in an already amply supplied market. Analysts say it may help fill gaps in Iranian crude flows reduced by additional sanctions from the Trump administration.
However, some experts warn that the added supply may not be enough to offset potential price increases resulting from tariffs on Canada and Mexico, which could raise costs for refineries. The situation remains fluid, with Europe racing to craft a plan for Ukraine following tensions between Trump and President Volodymyr Zelenskiy.
Source: https://finance.yahoo.com/news/oil-edges-higher-traders-weigh-233813037.html