Oil falls more than $2 after OPEC+ producers agree to raise output | Reuters

Oil falls more than $2 after OPEC+ producers agree to raise output | Reuters

Oil prices fell sharply on Monday after OPEC+ overcame internal divisions and agreed to boost output, sparking concerns about a crude surplus as COVID-19 infections rise in many countries.

Brent crude was down $2.54, or 3.4%, at $71.05 a barrel by 1235 GMT. U.S. oil was down $2.64, or 3.6%, at $69.17 a barrel. Both benchmarks recorded their largest declines since early April.

OPEC+ ministers agreed on Sunday to increase oil supply from August to cool prices that this month hit their highest level in more than two years as the global economy recovers from the COVID-19 pandemic.

The group of members of the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia also agreed new production shares from May 2022.