01.03.202119:17:00UTC+00Oil Futures Retreat After Early Gains, Settle Notably Lower

Crude oil prices drifted lower on Monday, weighed down by a likely move by major oil producers to increase crude output from April.

The Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, scheduled to meet on Thursday, may consider increasing output levels.

It is widely felt that the OPEC+ might consider allowing as much as 1.5 million barrels per day of crude back into the market.

West Texas Intermediate Crude oil futures for April ended down $0.86 or about 1.4% at $60.64 a barrel.

The passage of the $1.9 trillion coronavirus relief bill through the U.S. House of Representatives on Saturday and the approval of Johnson & Johnson's Covid-19 shot buoyed the economic outlook and pushed oil prices higher earlier in the day.

Traders were also weighing the prospects of crude supply situation amid the ongoing tensions between the U.S. and Saudi Arabia.