After the OPEC + agreement ... oil prices fell in Asian trading
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Oil prices fell on Monday, erasing the strong gains made in the previous session after OPEC + agreed last week to gradually ease some production cuts between May and July.
Brent crude futures for June fell 61 cents, or 0.62 percent, to $ 64.23 a barrel by 05:15 GMT, while US West Texas Intermediate crude oil for May recorded $ 60.88 a barrel, down 58 cents, or 0.94 percent.
Both contracts rose by more than $ 2 a barrel last Thursday, as investors viewed the OPEC + decision as a confirmation of the demand-led recovery and fueled optimism from US President Joe Biden's $ 2 trillion infrastructure spending plan.
The Organization of the Petroleum Exporting Countries (OPEC), Russia and their allies, in a group known as OPEC +, agreed to ease production restrictions by 350,000 barrels per day in May, another 350,000 barrels in June, and another 400,000 barrels or so in July.
The decision came after the new US administration called on Saudi Arabia to keep energy within reach of consumers despite demand concerns, as parts of Europe remain under lockdown while Japan can expand emergency measures as needed to contain a new wave of coronavirus infections.
Most of the increase in supplies will come from Saudi Arabia, the world's largest exporter, which has said it will gradually cancel its additional voluntary cuts by July, in a move that would add 1 million bpd.
Investors are focusing this week on the indirect talks in Vienna between Iran and the United States as part of broader negotiations to revive the 2015 nuclear deal between Tehran and world powers.
Ahead of the talks, Iran's Foreign Ministry said it wanted the United States to lift all sanctions and refused any "step-by-step" easing of restrictions.
"The diplomacy may extend for months and nuclear compliance could take up to three months," said Henry Roma, an analyst at Eurasia, adding that the implementation of such a deal and an increase in oil exports could extend to early 2022.