il prices have dropped sharply, hitting their lowest since February 2021. This followed OPEC+’s decision to boost production faster, raising fears of oversupply while demand remains weak.
Brent and WTI Prices Drop
Brent crude fell by $1.06 to settle at $60.23 per barrel. U.S. West Texas Intermediate (WTI) dropped $1.16, closing at $57.13. These are the lowest closing prices in over four years.
Last week, Brent lost 8.3%, and WTI fell by 7.5%. Saudi Arabia signaled it can manage a long period of lower oil prices, which added pressure on the market. 
OPEC+ Raises Output Again
OPEC+ agreed to increase oil production by 411,000 barrels per day (bpd) in June. This marks the second straight month of output hikes. Combined increases for April, May, and June now total 960,000 bpd—about 44% of the 2.2 million bpd previously cut.
The group includes countries like Russia. Sources suggest they may fully unwind the cuts by October if members don’t follow their quotas.
Saudi Arabia Leads the Charge
Saudi Arabia is reportedly pushing the group to lift production faster. It aims to penalize members like Iraq and Kazakhstan for poor compliance and to pressure U.S. shale producers.
Ole Hansen of Saxo Bank said this move is both a warning to non-compliant members and a challenge to American oil producers.
Analysts Cut Forecasts
OPEC+’s decision has prompted banks to revise their oil price forecasts. Barclays now expects Brent to average $66 per barrel in 2025, down from $70. ING lowered its forecast to $65 for this year.
Jim Ritterbusch, an energy consultant, noted that fears of higher oil inventories are adding to the negative mood.
Inventory Build-Up and Recession Fears
David Wech, chief economist at Vortexa, said oil storage has increased by about 150 million barrels since February. These are stored both onshore and at sea.
Slower refined fuel imports and global recession fears are also keeping oil prices low.
Investment Impact
Girish Saligram, CEO of Weatherford International, warned that oil staying below $50 could delay offshore investments. He shared this concern at the Offshore Technology Conference in Houston.
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