The international benchmark fell to its lowest point since 2021 after a decision by Saudi Arabia and other producers to pump more crude surprised the markets.

Oil-exporting states have been under pressure from US President Donald Trump to slash prices, though analysts have said the move was pre-planned.

The decision is a serious negative for the oil market, given that oil demand is rising too slowly to sop up all of the extra supply.

Oil prices fell on Monday afternoon to their lowest level of the year after the OPEC oil cartel and its allies affirmed plans to gradually increase crude production beginning in April.

Oil prices plunged this week as a result of OPEC+'s planned production hike and Trump's tariff policies, and oil majors sold off as a result

A group of oil-producing countries known as OPEC+ will proceed with a long-delayed hike in oil production. Eight countries that have repeatedly delayed production increases will now move forward

Members of OPEC+ are planning to gradually unwind production curbs in April, which would add supply and could lead to lower prices.

Oil declined for a fourth straight session Wednesday, settling at its lowest price since September, on prospects for a global trade war that could dent demand and plans by major oil producers to begin unwinding output cuts next month.

Oil prices declined for a third session on Wednesday, as investors worried about OPEC+ plans to proceed with output increases in April, and U.S. President Donald Trump's tariffs on Canada, China and Mexico escalated trade tensions.