Oil Prices Decline After Report Says OPEC+ Considering Raising Production In July

Oil prices fell on Thursday after a report suggested that OPEC+ plans to boost its production in July amid a surprising buildup in U.S. crude inventory.

Brent crude futures fell about 1% to $64.29 per barrel, while West Texas Intermediate crude futures were down 0.9% at $61.07 per barrel at 4:15 am ET.

Bloomberg reported, citing delegates, that OPEC+ was planning to raise output for a third month and was considering a 411,000 barrels per day hike among other options.

The report said a final decision would be taken at a gathering on June 1.

Many industry experts believe that Saudi Arabia, the top oil exporter, is trying to punish overproducing group members by lowering oil prices. At the same time, U.S. President Donald Trump has also urged to keep oil prices relatively low.

“Compliance by the over-producing countries has not changed much, and so far, the previous quota increases have been absorbed by the market,” Martijn Rats, global oil strategist at Morgan Stanley, said, according to a Bloomberg report.

Global oil prices were already under pressure. According to a Reuters report, Energy Information Administration data released on Wednesday showed that U.S. crude and fuel inventories posted surprise stock builds last week as crude imports rose to a six-week high and gasoline and distillate demand fell.

Uncertainty about the tariff policy and concerns over a global economic slowdown have already raised fears that oil supply would outweigh any growth in demand.

The United States Oil Fund (USO) has fallen 12% year to date, while the Energy Select Sector SPDR Fund is down 5%.

Also See: Trump Gives ‘Very Serious Consideration’ To Take Freddie Mac, Fannie Mae Public: Retail Sees Path To Mid-$30s

For updates and corrections, email newsroom[at]stocktwits[dot]com.