Oil prices slumped sharply on Monday after OPEC+ unexpectedly announced a production increase of 411,000 barrels per day for June, exacerbating concerns over a global glut and declining demand due to escalating trade tensions between the U.S. and China. 

Brent crude briefly fell below $60 a barrel for the first time since 2020, and West Texas Intermediate dropped over 1.7%, deepening a weeks-long decline.

The production hike by Saudi Arabia, Russia, and other OPEC+ members marks a significant reversal from the cuts maintained since 2022. Analysts, however, questioned the timing and rationale behind the move. “The official line cites healthy fundamentals and low inventories, but with global growth expectations faltering, the motivation likely lies elsewhere,” said Swissquote’s Ipek Ozkardeskaya, who noted speculation that Riyadh may be punishing non-compliant cartel members or responding to U.S. political pressure.

Stock markets mirrored the oil slide in a subdued start to the week. Wall Street opened lower, dragged by losses in tech and media shares after President Trump announced tariffs on films produced outside the U.S., affecting Netflix, Lionsgate, and Paramount. The S&P 500 and Nasdaq were both down nearly 1%.

Meanwhile, traders await key central bank meetings later this week. The U.S. Federal Reserve and Bank of England are expected to hold rates steady, but any signals on future policy will be closely watched amid slowing global momentum.