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Oil Prices Dip after OPEC Agree to Ease Output Cuts

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Oil prices slipped on Monday, paring strong gains made in the previous session after OPEC agreed last week to gradually ease some of its production cuts between May and July.

Brent crude futures for June fell 33 cents, or 0.5, to 64.53 a barrel by 0206 GMT while U.S. West Texas Intermediate crude for May was at 61.20 a barrel, down 25 cents, or 0.4.

Both contracts settled up more than 2 a barrel on Thursday as investors viewed the OPEC decision as an affirmation of demandled recovery and optimism was boosted by U.S. President Joe Bidens 2 trillion infrastructure spending plan. Markets were closed on Friday because of the Easter holiday.

The Organization of the Petroleum Exporting Countries, Russia and their allies, a group known as OPEC, agreed to ease production curbs by 350,000 barrels per day bpd in May, another 350,000 bpd in June and further 400,000 bpd or so in July.

The decision came after the new U.S. administration called on Saudi Arabia to keep energy affordable for consumers despite demand concerns as parts of Europe remained under lockdown while Japan could expand emergency measures as needed to contain a new wave of coronavirus infections.

Under Thursdays agreement, OPEC cuts would be just above 6.5 million bpd from May, compared with slightly below 7 million bpd in April.

Most of the increase in supplies will come from the worlds top exporter, Saudi Arabia, which said it was phasing out its extra voluntary cuts by July, a move that will add 1 million…

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