(Bloomberg) — Oil held losses near the lowest close in almost four months after OPEC+’s plan to return barrels to the market raised concerns about oversupply.
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Brent futures traded near $78 a barrel after the August contract tumbled 3.4% on Monday. West Texas Intermediate was above $74. The alliance is scheduled to start unwinding output cuts as early as October, despite persistent concerns around the demand outlook and robust supply from outside of the group.
The return of barrels is earlier than some market watchers had expected, and reaction to the deal was mixed, including doubts about whether the group really will be able to ramp up production as rival supply surges. Key OPEC+ members have also pumped above their assigned quotas recently.
Oil prices have trended lower since early April as geopolitical risks ebbed and demand showed signs of faltering, leading to some refiners cutting operating rates. The prompt spread for Brent has narrowed again toward a bearish contango structure, signaling ample near-term supplies.
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