2025-05-03T15:51:01+00:00
Shafaq News/ OPEC+ will raise oil production by 411,000
barrels per day in June, the group announced on Saturday, marking the second
consecutive monthly increase, even as prices fall and demand forecasts weaken.
Following a brief online meeting, the alliance of major oil
producers—including Iraq, Saudi Arabia, Russia, the UAE, Kuwait, Kazakhstan,
Algeria, and Oman—said the market fundamentals remain healthy, with plans to
hold a full ministerial meeting on May 28.
Saturday’s hike continues the phased rollback of a 2.2 million bpd
cut agreed in December by eight key OPEC+ members. The gradual increases—about
138,000 bpd per month starting April—will total 960,000 bpd by the end of June,
amounting to 44% of the cut, according to Reuters calculations.
The decision also came under pressure from Washington, with US
President Donald Trump urging OPEC+ to ramp up supplies ahead of his scheduled
visit to Saudi Arabia later in May.
The group, however, still holds back nearly 5 million bpd in
supply, with many of those curbs set to remain until end-2026. Saudi officials
have reportedly told partners and industry stakeholders they are not willing to
prop up prices with further cuts.
“Compliance again appears to be the key focus, with Kazakhstan and
Iraq continuing to miss their compensation targets, alongside Russia to a
lesser extent,” said Helima Croft of RBC Capital Markets.
Brent crude futures fell more than 1% on Friday to $61.29 a barrel
as traders braced for more oil. Prices had already dipped below $60 in
April—hitting a four-year low—after OPEC+ announced a larger-than-expected
output boost for May and Trump’s imposed tariffs that raised concerns over a
global economic slowdown.
