Oil prices fell sharply in early Asian trading on Monday, with Brent crude dropping $2.04 (3.33%) to $59.25 per barrel and WTI falling $2.10 (3.60%) to $56.19. The decline follows OPEC+’s decision to increase oil production by 411,000 barrels per day (bpd) in June—part of a broader plan to raise output by 960,000 bpd over three months. The move signals a shift toward surplus in global oil supply.
The accelerated unwinding of previous output cuts, largely driven by Saudi Arabia’s push to enforce quota compliance among members like Iraq and Kazakhstan, could fully reverse voluntary cuts by October. Barclays responded by lowering its Brent crude forecast to $66 for 2025 and $60 for 2026.
Meanwhile, geopolitical tensions rose in the Middle East as Israel threatened retaliation against Iran after a Houthi missile, backed by Tehran, landed near an Israeli airport. Iran warned it would respond to any U.S. or Israeli attacks.
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