Skip to main content
Welcome to
super saver spring
offer ends april 20
save over $140
save over 85%
$0.99
per week for 24 weeks
Welcome to
super saver spring
$0.99
per week
for 24 weeks
// //

Oil fell 4% a barrel on Monday, as rising output from OPEC+ and the threat of another severe COVID-19 wave countered signs of a strong economic rebound in the United States.

Brent crude for June fell settled at $62.15 a barrel, down $2.71, or 4.2%. U.S. West Texas Intermediate settled at $58.65 a barrel, shedding $2.80, or 4.6%.

The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, agreed on Thursday to hike production monthly from May to July. OPEC member Iran, exempt from making voluntary cuts, is also boosting supply. [OPEC/O]

Story continues below advertisement

“The timing was not good,” said Bob Yawger, director of energy futures at Mizuho Securities. “It seemed like OPEC+ was going to roll the deal, but they didn’t and now it looks like they’re going to have to pay at least in the short term.”

Oil has recovered from historic lows last year with the support of record OPEC+ cuts, most of which will remain after July.

The global economic outlook has become clouded by another wave of coronavirus infections. Cases have spiked in India, Canada and other nations. France tightened lockdowns to head off the disease’s spread.

The United States saw job growth exceed 900,000 in March, but U.S. caseloads have surged as well, even though it has been among the fastest countries to vaccinate residents.

Investors are also focused on the revival of indirect U.S. talks with Iran as part of negotiations to resurrect the 2015 nuclear deal that limited Iran’s ability to produce nuclear weapons.

Washington officials said they expected the discussions beginning on Tuesday to be difficult. Eurasia analyst Henry Rome said he expected U.S. restrictions on Iranian oil sales to be lifted only after talks are completed and Iran returns to compliance.

Iran has already boosted exports to China despite the sanctions.

Story continues below advertisement

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies