Oil drops after OPEC+ decides on gradual easing of supply curbs

Oil futures eased in early Asian trading after OPEC+ decided to boost production over the coming months and Saudi Arabia raised prices for shipments to customers in its main market of Asia.

West Texas Intermediate dipped 0.4%, paring the 3.9% gain seen on Thursday, when the alliance decided to loosen its supply curbs gradually. The grouping will raise production by more 1 million barrels a day in stages between May and July, and over the same period, Saudi Arabia will roll back its voluntary 1-million-barrel-a-day reduction. Markets were closed on Friday for a holiday.

Crude has surged this year as the roll-out of coronavirus vaccines paves the way for the reopening of economies, and the decision by the Organization of Petroleum Exporting Countries and its allies was seen as a vote of confidence in the outlook. Reinforcing the signs that top economies are on the mend, the US added more than 900,000 jobs in March. That bodes well for oil demand.