Crude oil prices decreased to start off the week's trading, as the decision for a gradual output increase from OPEC+ and the rise in Iranian production opposes the strong economic recovery in the United States and the hopes of a large-scale recovery in demand during 2021.
Last Thursday, OPEC+ agreed on slight monthly increases in production during the period of May to July, and simultaneously Iran is working to increase production.
Brent crude fell from its highest levels to trade around $63.50 a barrel, and WTI fell to trade around $60.35 a barrel.
Oil recovered from its historic lows during the past year as a result of OPEC+'s record output cuts in the past 6 months and a slight recovery in global demand, which is expected to increase its pace during the second half of the year.
Meanwhile, slow vaccination procedures and the lockdowns in several European countries affected the economic recovery. The US labor market data showed an increase of nearly a million jobs in March contrasting the situation in Europe.
On the other hand, traders will be focusing on any developments that may lead to an increase in oil supply such as the indirect talks between Iran and the United States regarding the 2015 nuclear deal, and the removal of US sanctions, mainly on Iranian oil sales.