NEW YORK: Oil prices fell about 2% to a 12-week low on reports OPEC+ will proceed with a planned oil output increase in April and on worries what US tariffs would do to global economic growth and oil demand.
The Organization of the Petroleum Exporting Countries
and its allies like Russia, known as OPEC+, has decided to proceed with a planned April oil output increase, three sources from the producer group told Reuters on Monday.
OPEC+ has been cutting output by 5.85 million barrels per day (bpd), equal to about 5.7% of global supply, agreed in a series of steps since 2022 to support the market.
Brent futures were down $1.48, or 2.0%, to $71.33 a barrel by 1:35 p.m. EST (1835 GMT), while US West Texas Intermediate (WTI) crude fell $1.65, or 2.45%, to $68.11.
That puts both crude benchmarks on track for their lowest closes since December 6.
In other US energy markets, the start of the April contract as the new front-month pushed US diesel futures down to a nine-week low toward the end of winter heating season. Gasoline futures soared to a six-month high ahead of summer driving season.
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