U.S. crude oil fell more than 3% on Monday as OPEC+ announced plans to phase out voluntary production cuts totaling 2.2 million barrels per day.
A coalition of eight OPEC+ members led by Saudi Arabia and Russia announced Sunday that they would begin phasing out those cuts over the course of 12 months starting in October.
The planned phase out, however, will be subject to market conditions and could be reversed, the producers said.
OPEC+ is keeping separate tranches of production cuts totaling 3.6 million bpd in place until the end of 2025.
Under the plan, more than 500,000 bpd would return to the market by December, and 1.8 million bpd would come back by June of 2025.
U.S. crude oil fell more than 3% on Monday as OPEC+ announced plans to phase out voluntary production cuts totaling 2.2 million barrels per day.
A coalition of eight OPEC+ members led by Saudi Arabia and Russia announced Sunday that they would begin phasing out those cuts over the course of 12 months starting in October.
The planned phase out, however, will be subject to market conditions and could be reversed, the producers said. OPEC+ is keeping separate tranches of production cuts totaling 3.6 million bpd in place until the end of 2025.
Here are Monday's closing energy prices:
"Some people read the OPEC statement, particularly the part about the adding barrels back from the voluntary cut, as bearish," Helima Croft, head of global commodity strategy at RBC Capital Markets, told CNBC's "Worldwide Exchange."
"They were pretty clear that this is going to be data dependent," Croft said. "As we get to the end of August, if the fundamental picture looks worse than what we have now, they would pause that addition."
Under the plan, more than 500,000 bpd would return to the market by December, and 1.8 million bpd would come back by June of 2025.
