Crude oil futures ended sharply lower on Monday, weighed down by an announcement by OPEC+ that the group will begin phasing out voluntary production cuts over the next one year. The Organization of the Petroleum Exporting Countries (OPEC) and allies, collectively known as OPEC+, agreed on Sunday to extend their official crude output cuts into 2025, but also set out a timetable for gradually unwinding some of its oil production cuts starting in October. The OPEC's decision to phase out production cuts will see more than 500,000 bpd of crude returning to the market by December. 1.8 million bpd would come back by June of 2025.
Benchmark crude oil futures for July delivery fell $2.77 or about 3.6% to settle at $74.22 a barrel on the New York Mercantile Exchange. Brent crude for July delivery was down $2.75 or about 3.4% to $81.17 per barrel on London's Intercontinental Exchange.