Oil prices fell sharply on Monday amid concerns about oversupply after OPEC+ producers overcame internal divisions and agreed to boost output.
Brent crude futures for September delivery slumped 2.5 percent to $71.75 a barrel, while WTI futures were down 2.6 percent at $69.69.
The OPEC cartel and partners such as Russia agreed on Sunday to boost supply from August, ending a two-week spat between Saudi Arabia and the United Arab Emirates.
The cartel will boost output by 400,000 barrels a day each month from August, continuing until all of its halted output has been revived.
The agreement also reveals baseline increases for four of OPEC’s member states and one non-OPEC state beginning in May of 2022.
The truce between the two long-time allies sparked concerns about a crude surplus as COVID-19 infections surge worldwide.
The global coronavirus caseload has surpassed 190 million as the second wave continues its onslaught across the world due to the spread of new variants.
Daily infections have been surging from the United States and Europe to Asia and the global seven-day average of new cases each day is over half a million for the first time since May.