Oil under pressure after OPEC agrees output boost

Oil prices were under pressure Monday (July 19) after a weekend deal by OPEC.

The producer nations agreed to lift output from August.

They want to cool prices that earlier this month rose to their highest in about two and a half years.

The deal came after the Saudi Arabia and the UAE patched up divisions over strategy.

New production quotas for next year were also agreed for some member states.

By early Monday the deal saw prices for U.S. and international benchmark crude both down over 2%.

Last year OPEC cut output by a record 10 million barrels per day as lockdowns saw demand evaporate.

It has gradually brought back some supply, but is still way down on pre-crisis levels.

Analysts say that leaves the market looking pretty tight, and may mean any price falls are short lived.

Goldman Sachs, for one, says it remains bullish on the outlook for prices.

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