Investing.com – Oil prices fell on Monday following the Organisation of Oil Exporting countries (OPEC)’s decision to raise output on Friday.
Prices initially jumped after the OPEC deal was announced, as the supply boost was less than some investors had anticipated.
The OPEC agreed to a nominal increase in production of 1 million barrels a day. While OPEC members will add around 700,000 barrels a day, non-OPEC oil suppliers led by Russia would add the rest.
Crude Oil WTI Futures for August delivery were trading at $68.43 a barrel at 12:55AM ET (04:55 GMT), down 0.22%. Brent Oil Futures for August delivery, traded in London, were also down 1.7% at $74.05 per barrel.
Meanwhile, Shanghai Crude Oil WTI Futures for September delivery were down 2.14% at 467.2 yuan per barrel on Monday
Saudi Arabia’s Energy Minister Khalid Al-Falih promised during the meeting to “act decisively to keep oil prices under control”.
“We will do whatever is necessary to keep the market in balance,” Al-Falih told reporters on Saturday.
"The only country that can increase production is Saudi Arabia, so its interpretation of the deal is the one that matters," said Ann-Louise Hittle, a veteran OPEC watcher at consultant Wood Mackenzie Ltd.
Energy consultancy Wood Mackenzie said the agreement "represents a compromise between responding to consumer pressure and the need for oil-producing countries to maintain oil prices and prevent harming their economies".
OPEC and non-OPEC partners including Russia started withholding supply in 2017 and cut output by 1.8 million barrels per day (bpd) to prop up prices.
The group's crude output has been below the targeted cuts, which is now expected to be reversed by supply rises.