Oil drops down two dollars after OPEC+ producers agreement

Economy

19-07-2021, 17:35

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INA – Sources

Oil prices dropped sharply on Monday, after OPEC+ overcame internal divisions and agreed to increase production, raising concerns about a crude surplus as COVID-19 cases surge in many countries.

Brent crude fell $2.01, or 2.7 percent, to $71.58 a barrel, and US crude fell $2.06, or 2.8 percent, to $69.75 a barrel.

OPEC + ministers agreed on Sunday, to increase oil supplies from August to calm prices, which rose this month to their highest level in more than two years as the global economy recovered from the COVID-19 pandemic.

The group, which includes members of the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, also agreed on new production quotas starting in May 2022.