Oil prices hit their lowest level of the year as the OPEC oil cartel and its allies revealed plans to gradually increase crude production starting in April. The production will rise by 2.2 million barrels daily, raising fears of oversupply and its potential to depress prices further. While consumers may benefit from lower energy costs, oil producers could see reduced profits. OPEC’s decision is seen not just as a response to demand trends, but also to growing political pressure, particularly from the Trump administration, pushing for lower energy prices.
The OPEC oil cartel and its allies announced a plan to gradually increase crude production, risking an excess supply that could lower prices further.
Many U.S. wells become unprofitable at prices below $60 a barrel, highlighting the fragility of oil profitability amid OPEC's production increase.
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