Oil Prices Tumble On Report Some OPEC+ Members Want Accelerated Output Increase

Update 10:33 am ET: What was already an ugly day for oil on the back of the Kazakhstan comments that it would effectively not adhere to OPEC+ quotas, turned even uglier after Reuters came out with another oil hit piece, reporting that "some" OPEC+ member countries are pushing for another output increase. The report said its OPEC sources said there were calls for that to be tabled at the May 5 meeting and enacted in June. 

Why OPEC+ would agree to flooding the world with oil at a time when most major countries are already teetering on recession, and a flood of production could send oil crashing and spark budget crises across OPEC+ nations, was unclear. What was clear is that whoever commissioned the Reuters report, was short oil, as WTI dumped as low as $61.53 from a session high just shy of $65.

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Oil turned lower after Kazakhstan said it will prioritize national interests over those of the OPEC+ alliance, a move that risks fueling further tensions within the cartel.

Overnight saw prices rally after bigger than expected inventory drawdowns reported by API in the US, but that was all erased this morning as Kazakhstan’s newly appointed energy minister Erlan Akkenzhenov said the country is not able to reduce production at its three largest projects as they are controlled by international oil majors, Reuters reported.

He said the country will prioritize its national interests over commitments to the OPEC+ alliance.

The move lower shows just how overly sensitive financial markets have become in recent months. Kazakhstan has been 'over-producing' for years with OPEC unable to control them... but suddenly it's an issue?