Oil prices plunged towards a four-year low on Monday morning after the Organisation of the Petroleum Exporting Countries and its allies shocked traders with a huge production increase, intensifying concerns of a global glut colliding with a demand shock from Donald Trump’s trade war.

The OPEC+ alliance, led by Saudi Arabia and Russia, agreed at a meeting on Saturday (Sunday AEST) to raise output by 411,000 barrels per day from June, in a move designed to punish overproducing nations such as Kazakhstan and Iraq.

Loading…