OPEC+ to Accelerate Oil Output Hike for June

OILPRICE.COM

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On Saturday, 3 May 2025, OPEC+ announced that it has decided to speed up increases in oil production for the second straight month, increasing output by 411,000 barrels per day in June.

The producer group announced the supply increase after a little more than an hour-long online meeting, claiming that inventories were low and the oil market's fundamentals were sound.

After OPEC+ announced a larger-than-expected production boost for May and as U.S. President Donald Trump's tariffs sparked worries about a weakening global economy, oil prices dropped to a four-year low below $60 per barrel in April.

The increases also come after President Trump urged OPEC+ to increase production. Later in May, President Trump will travel to Saudi Arabia.

Eight OPEC+ nations that have been carrying out the group's most recent output cut of 2.2 million barrels per day decided in December to phase it out gradually starting in April 2025 with monthly rises of roughly 138,000 barrels per day.

According to Reuters calculations, the June increase from the eight will bring the overall jump for April, May, and June to 960,000 bpd, which is a 44% unwinding of the 2.2 million bpd decrease.

As markets prepared for additional oil from OPEC+, Brent crude futures fell more than 1% on Friday to $61.29 a barrel.

Oil prices will fall on Monday due to the OPEC+ news amid trade tensions and concerns about economic growth, said UBS's analyst Giovanni Staunovo.

"We continue to call this a 'managed' unwind of cuts and not a fight for market share”, he said.

OPEC+, which includes the Organisation of the Petroleum Exporting Countries and allies such as Russia, is still cutting output by almost 5 million bpd and many of the cuts are due to remain in place until the end of 2026. The group plans to hold a full ministerial meeting on 28 May.



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