OPEC+ verdict impact: Oil hits 4-month low despite extended supply cuts till 2025; Near-term outlook turns bearish

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₹6,177 per barrel on the multi-commodity exchange (MCX).Also Read: OMCs to hold petrol, diesel prices in Q1FY25; dismal earnings eyed over revised margins: Kotak's Sumit Pokharna-US crude stocks jumped by 1.2 million barrels in the week to May 31, compared with analysts' estimates for a draw of 2.3 million barrels, according to data from the US Energy Information Administration (EIA). However, the build was below the American Petroleum Institute's reading of an increase of more than four million barrels.-Gasoline inventories rose by 2.1 million barrels versus expectations for an increase of two million barrels, adding to demand concerns as the week reflected fuel usage around the Memorial Day holiday, which is traditionally viewed as the start of the US summer driving season.-The price drop follows the recent policy verdict of the Organization of the Petroleum Exporting Countries and its allies (OPEC+).

The oil producer group plans to increase supply from the fourth quarter despite recent signs of weakening demand growth. Saudi Arabia's energy minister, Prince Abdulaziz bin Salman said OPEC would pause the unwinding of the cuts or reverse them if demand wasn't strong enough to absorb the barrels.-Oil prices drew some support from data showing US private payrolls increased less than expected in May, with data for April revised lower.