Oil Leads Market Plunge as Virus Rattles Faith in Recovery

Crude drops most in 10 months as virus surge spurs concerns
OPEC+ set to add 400,000 barrels a day each month from August

WATCH: OPEC and its allies agreed to boost output. Bloomberg Intelligence commodity strategist Mike McGlone discusses what the deal means for oil prices.(Source: Bloomberg)

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By Jill R Shah

July 18, 2021 at 10:08 PM UTC

Updated on

July 19, 2021 at 7:28 PM UTC

This article is for subscribers only.

Oil was the biggest loser in a broad market selloff after OPEC+ agreed to boost crude supply as a resurgent virus shook investor confidence in the global economic recovery.

Futures in New York fell 7.5% on Monday, the largest decline since September. OPEC and its allies agreed to monthly supply hikes of 400,000 barrels a day. At the same time, the spread of the delta variant is stoking a risk-off mood in broader markets and threatening oil demand with fresh mobility restrictions around the world. The dollar also rose, reducing the appeal of commodities priced in the currency.