Oil prices slide after OPEC+ agrees to boost supply

Yahoo Finance's Jared Blikre reports on the energy sector as crude oil settles at $88.26 a barrel.

Video Transcript

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- Welcome back to Yahoo Finance. I want to turn your attention to the oil sector. And OPEC plus sticks to its targeted rise of 400,000 barrels a day. Here with more on that in our crude settled, let's bring in Yahoo Finance's Jared Blikre. And Jared, this move was expected.

JARED BLIKRE Yes, it was. They've been increasing-- this is OPEC plus now. They've been increasing their production by 400,000 barrels per month since about mid last year. They finally got the UAE on board. And this plan is set to go into effect for many more months here, so we're going to be tracking all of this.

Not a lot was expected to change out of this announcement, so we're not really seeing the price of crude oil change that much either. You can see, it fall-- it settled at about $88.16 or $0.26, just a few cents off from yesterday. But I'd like to show these longer term charts, definitely an uptrend right there up 32% over the last two months.

And let's check out the energy sector, which has been on fire this year, but maybe not so much today. Exxon which recently reported earnings. We've been talking about those since yesterday. That stock is down about half a percent today.

Not seeing a lot of big movers here. Let me just check out the price of Chevron here because it recently reached record highs. And you see it is up over 17% over the following-- or excuse me, over the past two months.

And as we head into the rest of the week, not a lot else on the calendar in terms of energy. I will throw out there, too, we got a surprise drop in the US in the inventories by about 1.8 million barrels. Uh, the expectation was for the opposite in addition of about that same amount. So there are a lot of market participants who are concerned about there being a structural deficit in supply in the oil market. And what happened today with OPEC plus increasing that production as scheduled still leading to some rising fears about the price of crude oil going even higher. That has WTI knocking on the door of $90 per barrel and Brent is already there.

- OK, Jared Blikre, thank you so much for that. We will leave it--