Brent crude drops 1% as market prepares for higher output
Nonetheless, the global oil market is expected to remain tight this year, analysts say
London — Brent crude oil fell 1% on Monday as investors prepared for an extra 1-million barrels a day in output to hit the markets after Opec and its partners agreed to raise production. Despite the increase, which is intended to stop the gap between global supply and demand from becoming too wide, analysts said global oil markets would likely remain relatively tight this year. Brent crude futures were down 78c at $74.78 a barrel at 9.17am GMT, while US light crude was up 25c at $68.83 a barrel, supported in part by a Canadian supply outage. Prices initially jumped after an Opec deal to increase output was announced late last week, as it was not seen boosting supply by as much as some had expected. Opec and non-Opec partners including Russia have since 2017 cut output by 1.8-million barrels a day to tighten the market and prop up prices. "As yet there is no plan as to how the limits will be reallocated. One simple approach would be to reduce the limits of those not producing enough ...
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