FX.co ★ Oil Prices Slide After OPEC+ Hike

Oil prices fell on Friday after Saudi Arabia and other OPEC+ states agreed to bring forward oil production rises to offset Russian output losses because of Western sanctions.

The downside, however, remained capped by signs of tight global supply and expectations of increased demand as China eases its COVID restrictions.

Benchmark Brent crude futures dropped 0.7 percent to $116.75 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were down 0.8 percent at $115.92.

The oil exporters' cartel said it would increase supply by 648,000 barrels per day in July and August, 200,000 barrels per day more than scheduled under a supply agreement with other producers, including Russia, known as OPEC+.

The planned production increase comes at a time when the demand outlook is clouded by many uncertainties.

Recession warnings are coming thick and fast, with Jamie Dimon, chairman and chief executive of JP Morgan Chase, describing the challenges facing the U.S. economy as akin to a "hurricane" down the road.

In focus later today will be U.S. employment data for May. It is believed that weak data could sway the Fed towards a less aggressive policy path.