Oil slips to $64 as rising OPEC+, Iranian output weighs | Reuters

Oil slips to $64 as rising OPEC+, Iranian output weighs | Reuters

Oil slipped to around $64 a barrel on Monday as rising supply from OPEC+ and higher Iranian output countered signs of a strong economic rebound in the United States and hopes for a wider demand recovery in 2021.

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

Brent crude for June fell 96 cents, or 1.5%, to $63.90 a barrel by 0905 GMT. U.S. West Texas Intermediate crude for May dropped 62 cents, or 1%, to $60.83.

“The OPEC+ decision, perhaps nudged along by increasing Iranian production heading to China, probably means we have seen the best of the oil rally now for the next few months,” said Jeffrey Halley of brokerage OANDA.