Global oil prices tumbled sharply on Monday after OPEC+ announced increased production for June. The alliance of oil-producing countries, led by Saudi Arabia, agreed to raise output by an additional 411,000 barrels per day (bpd) in June, following a similar increase in May.
As a result, Brent crude dropped as much as 4.6% to near $58 per barrel, while West Texas Intermediate (WTI) hovered around $56 in early trading. Brent is now approaching the four-year low it previously touched in April 2025. The aggressive ramp-up in production comes amid growing concerns that US President Donald Trump’s tariffs could trigger a global recession, potentially weakening oil demand just as supply expands. Consequently, April recorded oil’s largest monthly loss since 2021.
The continued slide in oil prices spells potential economic relief for India, which relies heavily on imported crude. A lower oil import bill could ease inflationary pressures and help buffer the economy against external shocks. India’s average crude basket price stood at $67.73 per barrel in April but fell to $61.89 on May 1, reflecting the global downtrend.
“While there are concerns about the first, second, and third round effects of US tariffs, especially on external demand and capital formation—one important factor is the ongoing, albeit unstated, pursuit of lower oil prices, possibly as low as $50 per barrel,” said Chief Economic Advisor V Anantha Nageswaran on Sunday.
Meanwhile, there has been no change in petrol and diesel prices in India. The last adjustment was an increase of `50 in LPG prices.