HONG KONG: Oil prices slumped on Monday after eight OPEC+ members announced a sharp increase in production, adding to fears of over-supply of crude.
In morning trade in Asia, West Texas Intermediate was down 3.8 percent at $56.08 per barrel while Brent North Sea Crude slid 3.5 percent at $59.17.
The output increase of 411,000 barrels a day announced by Saudi Arabia, Russia and six other members of the oil cartel on Saturday added to concerns about over-supply.
The price of crude has already been sliding because of fears of a global economic slowdown on the back of US President Donald Trump’s tariff onslaught.
“OPEC+ has just thrown a bombshell to the oil market,” Jorge Leon, analyst with Rystad Energy, told AFP.
“(Saturday’s) decision is a definitive message that the Saudi-led group is changing strategy and pursuing market share after years of cutting production,” he added.
