- WTI price loses momentum to near $55.75 in Monday’s Asian session, down 4% on the day.
- OPEC+ is set to further speed up oil output hikes, weighing on the WTI price.
- Iran said it will strike back if the US or Israel attacks.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $55.75 during the Asian trading hours on Monday. The WTI price falls after the Organization of the Petroleum Exporting Countries and allies (OPEC+) agreed to surge production by 411,000 barrels per day in June.
OPEC+ agreed on Saturday to increase output by another 411,000 barrels per day in June. The decision follows a surprise move in April by agreeing to a bigger-than-expected output hike for May despite weak prices and slowing demand. Reuters reported that this could bring back to the market as much as 2.2 million barrels per day by November.
Oil prices in April posted the biggest monthly loss since 2021, as US President Donald Trump’s tariffs have raised concerns over a recession that will slow demand at the same time that OPEC+ is quickly increasing production.
Meanwhile, the escalating geopolitical tensions in the Middle might cap the downside for the WTI. Israeli Prime Minister Benjamin Netanyahu has vowed to retaliate against the Houthis after a missile fired by the group struck the grounds of Israel’s main airport. Iran’s Defence Minister Aziz Nasirzadeh said on Sunday that Tehran would strike back if the US or Israel attacked.
