Crude Oil Prices Tumble As Certain OPEC+ Members Reportedly Consider Output Hike In June

West Texas Intermediate crude futures fell to as low as $62.57, down 3.30% or $2.10 from Tuesday’s closing price.

Crude oil prices declined on Wednesday amid reports that members of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, are planning to continue output increases for the second consecutive month in June.

Kazakhstan’s new oil minister told Reuters in an interview that the country will prioritize its national interests over those of OPEC.

The Central Asian country is not alone in wanting to increase its oil production – a Reuters report stated that “multiple” OPEC+ members are expected to suggest an increase.

West Texas Intermediate crude futures fell to as low as $62.57, down 3.30% or $2.10 from Tuesday’s closing price.

Concerns about a potential recession, driven by President Donald Trump’s tariff policies, have also emerged as a key component of growth forecast cuts by brokerages, as well as institutions such as the International Monetary Fund (IMF).

IMF raised the odds of a recession in the U.S. to 40%, from 25% in October.

Recessionary concerns aside, IG Market analyst Yeap Jon Rong thinks that a U.S.-Iran nuclear deal could put further downward pressure on crude oil prices.

"The broader trend remains tilted to the downside, as investors may struggle to find conviction in an improving supply-demand outlook, especially amid the drag from tariffs on global growth and rising supplies from OPEC+.”

However, with Trump softening his stance against Powell and Treasury Secretary Scott Bessent stating that the U.S.-China trade war could de-escalate in the “very near future,” crude oil prices recouped some of the losses during Wednesday’s intra-day trading session.

At the time of writing, WTI crude oil futures were trading at $62.33, down 2.10% for the day.

Brent crude futures traded at $65.99, down 2.15%. 

Amid the market uncertainty, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, gained 1.72% on Wednesday.

The United States Oil Fund ETF (USO) was down by 2.30% at the time of writing, while the ProShares Ultra Bloomberg Crude Oil ETF (UCO) declined 3.20%.

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