Brent crude slipped below $80 per barrel for the first time since February after Saudi Arabia signaled it will lift production by roughly 400,000 barrels per day beginning in July, a move that has raised fresh concerns about cohesion within the OPEC+ alliance.

The kingdom’s decision follows months of frustration over quota overproduction by several smaller members and comes against a backdrop of softening demand growth in China. WTI fell in tandem, trading near $76 as traders unwound long positions built up during the spring rally.

Hedge funds cut net-long positions in crude futures by the largest weekly amount in nine months, according to exchange data. Refining margins in Asia and Europe have also narrowed, suggesting that physical demand is not absorbing additional barrels as quickly as some producers had hoped.

Attention now turns to the next OPEC+ ministerial meeting, where Riyadh’s shift toward defending market share — rather than price — could force a difficult conversation with members that rely on higher oil revenues to balance their budgets.