Following the announcement by the US government that it will release 180 million barrels of oil over six months, oil prices fell more than 5% to their lowest level in nearly two weeks on Monday.
A pandemic-related travel ban in China has also lowered demand.
Brent, the international oil benchmark, fell $5.77, or 5.1 percent, to $106.90 a barrel on Thursday, according to data, while U.S. West Texas Intermediate (WTI) crude fell $6.32, or 5.8%, to $103.01.
Since Russia’s invasion of Ukraine on February 24, both benchmarks have risen by roughly 36% this year.
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Meanwhile, the Organization of Petroleum Exporting Countries and its Allies (OPEC+) agreed on Thursday to increase the group’s production by another 432,000 barrels per day in May, giving Nigeria another chance to boost its oil revenue.
Due to shifting baselines of five of its members, the quota of 400,000 barrels per day was increased by 32,000 barrels per day.
Saudi Arabia’s production quota has been increased to 10.549 million barrels per day, while Russia’s quota has also been increased. The UAE has a daily quota of 3.04 million barrels, Kuwait has a daily quota of 2.694 barrels, and Iraq has a daily quota of 4.461 million barrels.
OPEC+ has ignored calls from a number of other countries, including the United States, to increase production beyond what is planned, despite the fact that high gasoline prices are putting a strain on consumers.
The next OPEC+ meeting to agree on the June plan will take place on May 5.
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