Oil plunges over 3% as oversupply concerns weigh

Oil tanks

Oil prices fell sharply in early session today, May 5, with both major contracts hitting their lowest levels since April 9, amid reports that OPEC+ may accelerate production increases.

Brent crude was trading down 3.45% at $59.18 a barrel, at 8:08 am Makkah time. West Texas Intermediate (WTI) crude slumped 3.75% to $56.09 a barrel.

Barclays lowered its Brent crude price forecast in a note on May 4, citing the OPEC+ decision to accelerate the end of voluntary production cuts. The bank expects Brent crude to average $66 and $60 per barrel in 2025 and 2026, down $4 and $2 from its previous forecasts, respectively.

OPEC+ is likely to agree at its June meeting to increase production by approximately 411,000 barrels per day in July, Reuters reported, citing sources familiar with the matter.