Oil Prices Drop 2% as OPEC+ Plans to Accelerate Production

Oil prices fell 2% on Wednesday after sources reported that OPEC+ would consider accelerating its oil production increase in June. However, losses were mitigated by a report that US President Donald Trump may cut tariffs on Chinese imports.

Brent crude futures fell $1.32, or 1.96%, to settle at $66.12 a barrel.

West Texas Intermediate (WTI) crude closed down $1.40, or 2.2%, at $62.27.

Latest Oil Prices:

WTI Crude $62.25 -0.02 -0.03%

Brent Crude $66.12 -1.32 -1.96%

Murban Crude $67.12 -1.56 -2.27%

Louisiana Light $66.60 -0.72 -1.07%

Bonny Light $78.62 -2.30 -2.84%

Mars US $72.57 -1.09 -1.48%

Gasoline $2.081 -0.003 -0.14%

Natural Gas $3.000 -0.022 -0.73%

Brent crude, the global benchmark, reached a session high of $68.65, its highest level since April 4, before the OPEC+ announcement.

Three sources familiar with the OPEC+ talks said that several members of the oil alliance will propose accelerating oil production increases in June for the second consecutive month, amid escalating disagreements between countries that adhere to production quotas and those that exceed them.

Phil Flynn, an analyst at Price Futures Group, said, "I wouldn't be surprised if OPEC wanted to increase production. It could raise concerns about the cartel's cohesion. They may be tired of curbing production increases."

A source familiar with the matter said Wednesday that the Trump administration will consider reducing tariffs on imported Chinese goods pending talks with Beijing, adding that any action would not be unilateral.

Tariffs on China are likely to be reduced to between 50% and 65%, according to a report in the Wall Street Journal, citing a White House official.

U.S. Treasury Secretary Scott Besant said he believes excessive tariffs between the United States and China must be reduced before trade negotiations can resume.

Trump backed off his threat to fire Federal Reserve Chairman Jerome Powell days after criticizing the Fed for not cutting interest rates, easing investor concerns about economic uncertainty.