Oil Prices Dive as OPEC+ Stuck to Its Existing Deal for May Output

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Storage tanks are seen at Marathon Petroleum’s Los Angeles Refinery, which processes domestic & imported crude oil into California Air Resources Board (CARB), gasoline, diesel fuel, and other petroleum products, in Carson, Calif., on March 11, 2022. Picture taken with a drone. (Bing Guan/Reuters)

LONDON—Oil prices plunged on Thursday, while OPEC+ stuck to its existing deal for May output.

Brent crude futures for May, which expire on Thursday, were down $5.91, or 5.21 percent, to $107.54 a barrel by 1253 GMT.

The most actively traded June futures were down $5.53 at $105.91, after falling by $7.

U.S. West Texas Intermediate futures for May delivery was down $6.06, or 5.62 percent, to $101.76 a barrel, off a low of $100.16.

The Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC+, agreed at a meeting on Thursday to stick to its existing agreement and raise its May production target by 432,000 barrels per day (bpd).

“In the light of the overnight developments, the OPEC+ decision seems to be a non-event. The increase of 432,000 bpd has been expected and built into the price. The decision will be greeted with disappointment from consuming nations,” PVM’s Varga said.

International Energy Agency (IEA) member countries are due to meet on Friday at 1200 GMT to decide on a potential collective oil release, a spokesperson for New Zealand’s energy minister said on Thursday.

By Noah Browning and Julia Payne

Reuters

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