WASHINGTON (dpa-AFX) - Oil prices fell sharply to a 4-month low on Monday, weighed down by an announcement by OPEC+ that the group will begin phasing out voluntary production cuts over the next one year.
West Texas Intermediate Crude oil futures for July ended down by $2.77 or about 3.6% at $74.22 a barrel.
Brent crude futures dropped to $78.36 a barrel, losing $2.75 or about 3.4%.
The Organization of the Petroleum Exporting Countries (OPEC) and allies, collectively known as OPEC+, agreed on Sunday to extend their official crude output cuts into 2025, but also set out a timetable for gradually unwinding some of its oil production cuts starting in October.
The OPEC's decision to phase out production cuts will see more than 500,000 bpd of crude returning to the market by December. 1.8 million bpd would come back by June of 2025.
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