Crude oil prices recovered from Monday’s losses that saw their benchmarks falling to the lowest level since early 2021, following OPEC+’s decision to further increase production for a second consecutive month.
Brent crude rose 1.39% to $61.07 per barrel on Tuesday morning, while the West Texas Intermediate gained 1.42% to $57.94 a barrel.
Oil futures experienced a slump, declining roughly 2% on Monday, reaching their lowest point in four years following OPEC+’s decision to further increase production for a second consecutive month. U.S. crude prices dropped by $1.16, equating to a 2% decrease, concluding the trading day at $57.13 per barrel—their lowest close since February 2021. Meanwhile, Brent crude, the international benchmark, fell by $1.06 or 1.7%, settling at $60.23 per barrel, the lowest since February 2021. So far in 2025, oil prices have plunged by around 20%.
OPEC+, a coalition of eight producers spearheaded by Saudi Arabia, resolved on Saturday to increase production by another 411,000 barrels per day in June. This course of action follows the group’s unexpected announcement a month earlier to increase May’s output by the same amount.
The June production boost significantly surpasses the 140,000 barrels per day initially predicted by Goldman Sachs. Over two months, OPEC+ is injecting an additional supply of more than 800,000 barrels per day into the global market.
As a result of these developments, Goldman Sachs has adjusted its projection for U.S. crude prices in 2025, reducing their estimate by $3 to $56 per barrel.
