Exxon Mobil Corp (NYSE:XOM, ETR:XONA) and Chevron Corporation (NYSE:CVX, ETR:CHV) traded lower ahead of Monday’s opening bell, tracking a sharp decline in oil prices after OPEC+ agreed to a significant supply boost.
Brent crude fell as much as 4.6% before trimming losses, amid concerns the alliance’s output increase could flood a weakening market already rattled by US–China trade tensions.
The group, led by Saudi Arabia and Russia, committed to lifting production by more than 400,000 barrels a day starting in June, mirroring last month’s unexpectedly large hike.
The policy shift, aimed at disciplining members exceeding quotas and recapturing market share, has added downward pressure on prices.
Saudi delegates indicated further increases may follow, adding to volatility.
Analysts warn the move could destabilise the alliance. With crude near April’s four-year low, the slide may help ease inflation concerns ahead of this week’s Federal Reserve meeting, though it compounds challenges for energy companies and oil-dependent economies.
Brent for June delivery pared some of its earlier losses to change hands for $60.53, down 1.2%.
Exxon and Chevron shares were both around 1% lower heading toward the open.