Oil falls 2% on prospect of OPEC+ supply increase

Oil drilling rigs

Oil closed lower today, April 23, following reports that several OPEC+ members are considering accelerating production increases in June. In addition, the US adopted a less hawkish approach to trade negotiations with China.

Benchmark Brent crude futures for June delivery plunged 1.95%, or $1.32, to settle at $66.12 a barrel. US West Texas Intermediate (WTI) crude futures for June delivery fell 2.20%, or $1.4, to $62.27 a barrel.

Several OPEC+ members intend to propose accelerating the increase in oil production, which would be the second such move in two months if the alliance agrees to the move, Reuters reported, citing informed sources.

Furthermore, Kazakh Energy Minister Erlan Akkenzhenov told Reuters that his country would prioritize its national interests over OPEC+ when setting domestic oil production levels.

However, he reiterated in an email to Bloomberg that Kazakhstan's participation in the OPEC+ alliance is extremely important for ensuring global stability, but that his country will always focus on its national interests while respecting its international obligations.

He noted that Kazakhstan cannot control the production of its largest oil fields because they are managed by major international companies.