Oil Prices Drop as OPEC+ Boosts Output Amid Global Demand Concerns

Oil prices plunged Monday after OPEC+ announced an output increase of 411,000 barrels per day for June—adding to oversupply worries already affecting markets. This follows a similar production hike just a month earlier that had also triggered a price drop.

Brent crude briefly dipped below $60 per barrel for the first time since 2020. The decision comes as global economic concerns grow due to the ongoing trade war led by U.S. President Donald Trump, with analysts pointing to potential weakening in oil demand.

Analysts remain puzzled over the cartel’s motivation, with theories ranging from Saudi Arabia punishing non-compliant OPEC members, to pressure from Trump to drive oil prices down as a geopolitical strategy, or even efforts to undercut U.S. shale producers.

Wall Street opened lower amid this uncertainty, while shares in major film companies fell after Trump proposed 100% tariffs on foreign-made films. Meanwhile, markets in London, Tokyo, and Hong Kong were closed for holidays.

Investors are now focused on upcoming interest rate decisions by the U.S. Federal Reserve and Bank of England this week.