Oil Dropping Below $64 Under Pressure From Increased Production From OPEC+ And Iran

Oil prices fell below $64 a barrel today, Monday, as the impact of rising supplies from OPEC+ and increasing Iranian production was overshadowed by signs of a strong economic recovery in the United States and broader expectations for a recovery in demand in 2021.

The Organization of the Petroleum Exporting Countries, Russia and their allies, a group known as OPEC+, agreed on Thursday to raise monthly production between May and July. Iran, which is exempt from any voluntary cuts, is also boosting its supplies.

Brent crude futures for June delivery fell $1.36, equivalent to 2.1%, to $63.50 a barrel by 11:20 GMT, while US West Texas Intermediate crude for May delivery fell $1.29, or 2.1%, to $60.16 a barrel.

Oil recovered from historic lows reached last year, with the support of a record OPEC+ production cut, most of which will continue after July, and some recovery in demand, which is expected to accelerate in the second half of the year.

In another development that may ultimately lead to an increase in supplies, investor attention has shifted to indirect talks between Iran and the United States within the framework of negotiations to revive the 2015 nuclear deal between Tehran and world powers.

Iran has already boosted oil exports to China, although sanctions against it have not yet been lifted.