Oil plunges to $83 a barrel on Opec supply hopes

The global oil benchmark, Brent dropped as much as 6% to trade below $83 a barrel, the lowest since January.

Global crude oil prices extended declines as Saudi Arabia and other Opec countries were reported to be discussing an output increase, while China was said to be tightening its anti-Covid curbs, hurting the outlook for demand.

The global oil benchmark, Brent dropped as much as 6% to trade below $83 a barrel, the lowest since January. Declines accelerated after the Wall Street Journal reported Opec+ is considering an output increase of 500,000 barrels ahead of the EU’s embargo of Russian oil. If confirmed, the production increase would come as market sentiment has shifted, with the price of physical barrels dropping.