Brent slumps over 3% to lowest close in 4 months

Oil drilling rigs

Oil deepened its losses today, June 3, after recording weekly and monthly losses, as investors evaluated the OPEC+ agreement to extend production cuts and amid concerns over weak global demand.

Brent crude oil for August delivery dropped 3.4%, or $2.75, to close at $78.36 per barrel, marking the lowest close since Feb. 7 ($77.83).

WTI crude for July delivery fell 3.6%, or $2.77, to $74.22 per barrel.

OPEC+ agreed to extend voluntary production reduction plans of 2.2 million barrels per day until the end of September 2024, and the group also decided to maintain separate tranches of production cuts, totaling 3.6 million barrels per day until the end of 2025.

Contributing to the downward pressure on prices was the decline in the ISM Manufacturing Purchasing Managers' Index in the United States to 48.7 points in May from 49.2 points in April, contrary to expectations for an increase to 49.6 points.