OPEC+ increases Oil Production For June
The oil cartel declared the supply increase, stating that the oil market's fundamentals are sound and inventories are relatively low following an hour-long online meeting
Quick overview
- OPEC+ will increase oil production by 411,000 barrels per day in June, marking the second consecutive month of output hikes.
- The decision comes despite falling oil prices and concerns over declining domestic demand.
- Saudi Arabia is reportedly pushing for a reversal of earlier output cuts to penalize non-compliant countries like Iraq and Kazakhstan.
- The June increase contributes to a total of 960,000 barrels per day added over April, May, and June, representing a significant unwinding of previous production cuts.
OPEC+ has announced that it will accelerate increases in oil production for a second consecutive month, raising output in June by 411,000 barrels per day despite falling prices and predictions of waning domestic demand.
The oil cartel declared the supply increase, stating that the oil market’s fundamentals are sound and inventories are relatively low following an hour-long online meeting.
After OPEC+ announced a higher-than-anticipated production boost for May, oil prices fell to a four-year low in April, dropping below $60 per barrel.
Meanwhile, President Donald Trump’s tariffs raised concerns about a faltering world economy. OPEC+ sources claim that Saudi Arabia is pressuring the group to swiftly reverse earlier output cuts to penalize countries like Iraq and Kazakhstan for failing to meet their production goals.
Trump’s calls for OPEC+ to increase output prompted these hikes. Trump is scheduled to travel to Saudi Arabia later in May. Eight OPEC+ nations agreed in December to progressively phase out the group’s most recent output cut of 2.2 million barrels per day starting in April 2025, with monthly increases of roughly 138,000 barrels per day.
According to calculations by Reuters, the June increase from the eight will total 960,000 bpd for April, May, and June, representing a 44 percent unwinding of the 2.2 million bpd cut..
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