Por Alex Lawler
LONDON, Apr 5 (Reuters) – Oil fell below $ 64 a barrel on Monday, as increased supply from OPEC + and increased Iranian production offset signs of a strong economic recovery in the United States. and expectations of a greater recovery in demand this year.
* The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC +, agreed Thursday to monthly increases in production from May to July. Iran, exempt from making voluntary cuts, is also boosting supply.
* At 1020 GMT, June Brent crude was down $ 1.36, or 2.1%, to $ 63.50 a barrel, while May’s West Texas Intermediate (WTI) was down 1.29 dollars, or 2.1%, to $ 60.16.
* “Perhaps the OPEC + decision, driven perhaps by increased Iranian production destined for China, means that we have seen the best of the rise in oil in the coming months,” said Jeffrey Halley of the brokerage. OANDA.
* Oil has moved away from last year’s all-time lows supported by record OPEC + cuts, most of which will hold after July, and some recovery in demand that the market expects to accelerate in the second half of the year.
* While slow vaccination and new lockdowns in parts of Europe have weighed on the rebound, figures released Friday showed the US economy created the most jobs in seven months in March, with all sectors adding jobs.
* In another development that could eventually lead to a higher supply, investors await indirect talks between Iran and the United States as part of negotiations to revive the 2015 nuclear deal between Tehran and world powers.
(Additional reporting by Florence Tan; edited in Spanish by Javier Leira)