Oil slips 1% after Opec+ accelerates output hikes

[SINGAPORE] Oil prices slipped 1 per cent at the start of trading on Monday after Opec+ accelerated output hikes and raised concerns about oversupply.

Brent crude futures fell 67 cents, or 1 per cent, to US$67.63 a barrel by 2308 GMT, while US West Texas Intermediate crude was at US$65.80, down US$1.20, or 1.8 per cent.

The Organization of the Petroleum Exporting Countries and their allies, a group known as Opec+, agreed on Saturday to raise production by 548,000 barrels per day in August, further accelerating output increases at its first meeting since oil prices jumped – and then retreated – following Israeli and US attacks on Iran.

The August increase represents a jump from monthly increases of 411,000 bpd Opec+ had approved for May, June and July, and 138,000 bpd in April.

Opec+ cited a steady global economic outlook and healthy market fundamentals, including low oil inventories, as reasons for releasing more oil. AFP