Oil ends at four-year lows as OPEC+ accelerates output hikes
NEW YORK/LONDON, May 5 (Reuters) - Oil fell by more than $1 a barrel...
NEW YORK/LONDON, May 5 (Reuters) - Oil fell by more than $1 a barrel on Monday to settle at over four-year lows as an OPEC+ decision to expedite its output hikes stoked fears about rising global supply at a time when the demand outlook is uncertain.
Brent crude futures settled at $60.23 a barrel, down $1.06, or 1.7%. U.S. West Texas Intermediate crude fell$1.16, or 2%, to end at $57.13 a barrel. Both benchmarks settled at their lowest since February 2021.
Last week, Brent shed 8.3% and WTI lost 7.5% after Saudi Arabia signaled it could cope with a prolonged lower price environment. That offset optimism on the demand side that U.S.-China tariff talks could occur, Saxo Bank analyst Ole Hansen said.
On Saturday, OPEC+ agreed to accelerate oil production hikes for a second consecutive month, raising output in June by 411,000 barrels per day (bpd).
The June increase by eight participants in the OPEC+ group, which includes allies like Russia, will bring the total combined hikes for April, May, and June to 960,000 bpd. According to Reuters calculations, that represents a 44% unwinding of the 2.2 million bpd of various cuts agreed on since 2022.
"For the producers outside of the OPEC+ group, which is now nearly 60% of global oil supply, the market share gains may have reached a peak if these new barrels are fed into the market and prices move lower," said Peter McNally, a Third Bridge analyst.
OPEC+ sources told Reuters that the group could fully unwind its voluntary cuts by the end of October if members do not improve compliance with their production quotas.
Dow, S&P 500 snap 9-day winning streaks as U.S. stocks close lower
U.S. stocks ended lower on Monday after President Donald...
U.S. stocks ended lower on Monday after President Donald Trump said he would levy a 100% tariff on movies produced outside the country. The White House said in a clarifying statement that no final decisions had been made.
Investors are also awaiting the Federal Reserve policy meeting to be concluded on Wednesday.
According to Dow Jones Market Data, the Dow Jones Industrial Average dropped 98.60 points, or 0.2%, to end at 41,218.83, snapping a nine-day winning streak.
The S&P 500 fell 36.29 points or 0.6% to close at 5,650.38, also snapping a nine-day winning streak.
The Nasdaq Composite declined 133.49 points or 0.7% to finish at 17,844.24.
Oil prices sink as OPEC+ hikes output, U.S. stock futures drop ahead of Fed meeting
Oil prices sank Monday morning while U.S. stock futures declined after the S&P 500 notched its longest...
Oil prices sank Monday morning while U.S. stock futures declined after the S&P 500 notched its longest winning streak in more than 20 years last week. Dow Jones Industrial Average futures YM00 were down around 241 points at 7:02 AM ET.
Crude prices CL.1dropped about 4%, near $56 a barrel, late Sunday after OPEC+ on Saturday agreed to ramp up output in June for a second straight month. The additional production of 411,000 barrels a day — after a similar hike in May — is seen as a punishment for overproduction by nations such as Iraq and Kazakhstan that had sent crude prices sharply lower, as well as appeasing President Donald Trump ahead of his upcoming trip to Saudi Arabia, Qatar and the UAE. June West Texas Intermediate crude CLM25 fell 7.5% last week, the biggest weekly drop since the week ending April 4, according to Dow Jones Market Data. U.S. benchmark oil prices fell 18.6% in April— their biggest monthly loss since November 2021.
Crude prices CL.1gained some ground Monday morning, trading up at $57.41 per barrel as of 7:06 AM ET.
Investors are laughing in the face of danger. Despite tariffs, recession...
Investors are laughing in the face of danger. Despite tariffs, recession warnings, and swirling uncertainty, the S&P 500 has gained for nine straight trading sessions (the longest winning streak in 21 years) and climbed above its level from Liberation Day on April 2. Retail investors’ backs are hurting because they’re carrying the market, buying a record $40 billion worth of US stocks in April, per JPMorgan. Strong earnings performances from Big Tech stocks such as Meta and Microsoft have also helped.
Fed Chair Jerome Powell and his central bank mafia are pretty much a...
Fed Chair Jerome Powell and his central bank mafia are pretty much a lock to keep interest rates steady, despite President Trump’s urging to lower rates. Much like everyone in the business world, the Fed is trying to navigate a deep fog of uncertainty, and Powell has repeatedly said he needs more clarity on the economy's direction before making a move. Traders are betting the first rate cut will come in July.
