Oil prices fell by 2% in the last hour amidst reports that OPEC+ members are deliberating on whether to implement another significant increase in oil production.
As the market digests the possibility of a supply boost, energy stocks felt the pressure of potential oversupply concerns.
The discussions, as reported by Bloomberg News on Thursday, include a potential output hike of 411,000 barrels per day (bpd) for July. Although OPEC+ has not yet reached a final agreement, the prospects of increased production are influencing market sentiment.
Reuters added that OPEC+ could accelerate oil hikes, potentially bringing an additional 2.2 million bpd back to the market by November, which includes the accelerated increase in July.
