Oil Slips to $64

Oil slipped to around $64 a barrel on Monday as rising supply from OPEC+ and higher Iranian output countered signs of a strong economic rebound in the United States and hopes for a wider demand recovery in 2021.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, agreed on Thursday to monthly production hikes from May to July. Iran is also boosting supply, CNBC reported.
Brent crude for June fell 96 cents, or 1.5%, to $63.90 a barrel. US West Texas Intermediate crude for May dropped 62 cents, or 1%, to $60.83.
“The OPEC+ decision, perhaps nudged along by increasing Iranian production heading to China, probably means we have seen the best of the oil rally now for the next few months,” said Jeffrey Halley of brokerage OANDA.
Oil has recovered from historic lows last year due to record OPEC+ cuts, most of which will still remain after July, and some oil demand recovery that is expected to gather pace in the second half of the year.
While a slow vaccine rollout and return to lockdown in parts of Europe have weighed on the rebound, figures on Friday showed the US economy created the most jobs in seven months in March, with all industries adding jobs.
“The seemingly invincible accelerating US recovery has offset OPEC+’s announcement on Thursday,” Halley said.