West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $65.00 during the early Asian trading hours on Monday. The WTI price slumps after the Organization of the Petroleum Exporting Countries and allies (OPEC+) agreed to a bigger-than-expected production increase in August.

The August increase represents a jump from monthly increases of 411,000 bpd Opec+ had approved for May, June and July, and 138,000 bpd in April. Opec+ cited a steady global economic outlook and healthy market fundamentals, including low oil inventories, as reasons for releasing more oil.

Oil prices slipped more than 1 per cent today after Opec+ surprised markets by hiking output more than expected in August, raising concerns