Oil Prices Tumble After Reported OPEC+ Supply Hike: Exxon, Chevron, Shell Stocks Slide Pre-Market
Synopsis
The United States Oil Fund fell 1.4% as Brent crude futures slipped 0.7% to trade just under $60 a barrel in early U.S. trading Monday, while West Texas Intermediate futures dropped 1.1% to $57.65.
Energy shares declined in pre-market trade on Monday after The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, said it would accelerate oil production increases, adding to supply pressures in a market already facing demand uncertainty and soft prices.
The news came after disappointing earnings from U.S. oil majors last week, which cited falling crude prices as a key headwind.
According to a report by Reuters, OPEC+ plans to bring up to 2.2 million barrels per day back to the market by November, with a 411,000 barrel per day (bpd) increase in June alone.
The United States Oil Fund (USO) declined 1.4% as Brent crude futures fell 0.7% to trade just below $60 a barrel in early U.S. trading, while West Texas Intermediate (WTI) futures dropped 1.1% to $57.65.
According to Reuters, the OPEC+ push comes as Saudi Arabia moves to penalize under-compliant members such as Iraq and Kazakhstan, signaling it is less willing to support prices unilaterally.
The announcement precedes President Donald Trump’s planned visit to Saudi Arabia this week. Talks are expected to focus on arms sales and a nuclear deal. Trump has repeatedly pressed OPEC+ to raise output to bring down fuel prices and counter inflation linked to his trade policies.
U.S.-listed shares of Shell (SHEL) fell 1.8%, while Exxon Mobil (XOM) and Chevron (CVX) dropped over 1% each in pre-market trading, extending their declines from last week.
Chevron fell short of earnings and revenue estimates last week, and Exxon missed on revenue. Both blamed weaker realized crude prices.
Barclays lowered its price target on Exxon to $127 from $130 on Monday but maintained an ‘Overweight’ rating. In a note to investors, Analyst Betty Jiang, cited by TheFly, said the company remains one of the top defensive and growth players in the energy sector, even amid a weaker macro backdrop.
The United States Oil Fund (USO) has fallen 16.7% year to date, while the Energy Select Sector SPDR Fund (XLE) is down 5.1%.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Read also: Dow Futures Rally Pauses As Fed Meeting Looms – Trump’s Tariff Threats Hit Netflix, Disney
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.