Crude Oil Futures Tumble Over 2%, US Natural Gas Powers 1.96% Higher

Key Moments:

Oil Prices Fall on Rising Global Supply, US Natgas Gains

Brent crude extended its slide early Monday, with futures falling 2.28% and sinking below the $60 per barrel mark. Analysts have warned that if support fails, further losses could take prices closer to $50, a level not seen in years. WTI futures also suffered a decline of over 2%.

The latest drop was attributed to OPEC’s recent decision to once again increase oil production next month. According to the latest plans, supply will increase by a further 411,000 barrels per day. This marks the second monthly increase, and the latter half of 2025 could see cumulative additions of up to 2.2 million barrels per day.

The added supply has stirred concerns among market participants about a potential supply glut, particularly amidst uncertain global demand conditions. Moreover, uncertainty has been amplified by heightened geopolitical tensions in the Middle East, prompting cautious positioning by traders.

Analysts have also argued that OPEC’s move may be part of efforts by the oil cartel to curb overproduction by countries like Kazakhstan and Iraq. However, the rise in supply comes amid soft global demand, stoking fears of a ballooning surplus.

Meanwhile, the value of US natural gas futures contracts has demonstrated an upward trend, with the figures climbing almost 2% on Monday to reach $3.701. Despite substantial increases in storage levels, a factor that typically exerts downward pressure on prices, market participants appear to be focusing on the potential for increased demand stemming from exports, alongside concerns regarding possible disruptions to supply.