Oil slumps 6% amid OPEC+ deal to boost supply, rising COVID cases | Reuters
Oil prices plunged more than $4 a barrel on Monday, headed for its worst day since March, after OPEC+ agreed to boost output, stoking fears of a surplus as rising COVID-19 infections in many countries threaten demand.
Crude oil's year-long surge has been sputtering for most of the last two weeks with the prospect of new supply undermining the case for higher prices. With the Delta variant of the coronavirus spreading, funds bailed out of long positions on Monday.
Brent crude lost $4.23, or 5.8%, at $69.36 a barrel by 11:08 a.m. EDT (1508 GMT). U.S. oil futures were down $4.56, or 6.4%, at $67.25 a barrel.
The Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, reached a compromise on Sunday to increase oil supply from August to cool prices, whichhad hit their highest level this month in more than two years.
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