TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

'Bombshell' OPEC+ output hike hits oil price

AFP
Hong Kong, China
Mon, May 5, 2025 Published on May. 5, 2025 Published on 2025-05-05T11:56:10+07:00

Change text size

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
'Bombshell' OPEC+ output hike hits oil price The American crude oil tanker Kriti Breeze is moving through the Suez Canal in Suez, Egypt, on Feb. 15, 2022. (Reuters/Mohamed Abd El Ghany)

O

il prices slumped on Monday after eight OPEC+ members announced a sharp increase in production, while Asian stocks treaded water in thin trade with major markets closed.

The output increase of 411,000 barrels a day announced by Saudi Arabia, Russia and six other members of the oil cartel on Saturday added to concerns about over-supply.

The price of crude has already been sliding because of fears of a global economic slowdown on the back of US President Donald Trump's tariff onslaught.

"OPEC+ has just thrown a bombshell to the oil market," Jorge Leon, analyst with Rystad Energy, told AFP.

"[Saturday's] decision is a definitive message that the Saudi-led group is changing strategy and pursuing market share after years of cutting production," he added.

On equity markets, Tokyo was closed for a holiday along with Hong Kong and mainland China. Taiwan edged lower while the Jakarta Composite Index gained.

Prospects

Every Monday

With exclusive interviews and in-depth coverage of the region's most pressing business issues, "Prospects" is the go-to source for staying ahead of the curve in Indonesia's rapidly evolving business landscape.

By registering, you agree with The Jakarta Post's

Thank You

for signing up our newsletter!

Please check your email for your newsletter subscription.

View More Newsletter

The Australian dollar gained against the US dollar after Prime Minister Anthony Albanese's election victory on Saturday, while the S&P/ASX 200 fell almost one percent.

Wall Street stocks concluded a strong week on a winning note Friday, notching solid gains on good US jobs data and improving sentiment about US-China trade talks.

In Europe, Paris and Frankfurt rose over two percent as markets brushed off official data showing eurozone inflation remained unchanged at slightly above the European Central Bank's two-percent target.

London also gained ground, with mining and commodity stocks -- sensitive to Chinese demand -- performing particularly well amid optimism for the potential Beijing-Washington talks, according to analysts.

Stephen Innes at SPI Asset Management said that the "market [is] catching its breath before the next directional catalyst drops".

This could come from progress -- or an absence of it -- in easing trade tensions between the United States and China or budget negotiations in Washington. 

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.

Share options

Quickly share this news with your network—keep everyone informed with just a single click!

Change text size options

Customize your reading experience by adjusting the text size to small, medium, or large—find what’s most comfortable for you.

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!

Continue in the app

Get the best experience—faster access, exclusive features, and a seamless way to stay updated.