WTI Crude Dips to $56 as OPEC+ Adds 411K Barrels, Tensions Escalate
WTI crude oil prices fell sharply, dropping 3% to $56.13, following OPEC+’s announcement of a 411,000 barrel per day production increase for June. This marks the second consecutive month of supply growth, potentially adding 2.2 million barrels daily to the market by November. Saudi Arabia spearheaded the decision, aiming to enforce production discipline amid concerns of a looming supply glut and uncertain global demand.
Geopolitical tensions, particularly between Iran and Israel, are injecting volatility into oil markets. While these tensions typically drive prices upward, current market sentiment remains dominated by oversupply fears. Technical indicators suggest further downside risk for WTI, with critical support levels emerging at $55.35 and $54.47.
