OPEC+ announced on Saturday (3) an agreement to accelerate the increases in oil production for the second month in a row. The decision will increase the production in June by 411,000 barrels per day, despite the low prices and expectations of the weakest demand.
After a short online meeting, the producers group announced the increase in the supply, saying that the basics of the oil market are healthy.
Oil prices fell to a four -year low in April, less than $ 60 a barrel, after Opec+ announced a production increase than expected in May, and when US President Donald Trump increased the interest in the global economy.
OPEC+ sources said that the Kingdom of Saudi Arabia is pressing OPEC+ to accelerate the reflection of previous production discounts to punish other members, Iraq and Kazakhstan, to obtain a low compliance with production classes.
The increases also follow Trump’s calls to increase OPEC+ production. Trump will visit the Kingdom of Saudi Arabia in late May.
In December, eight OPEC+ countries that carried out the latest production of the group of 2.2 million barrels per day agreed to gradually eliminate it in the monthly increases of about 138,000 barrels per day of April 2025.
The increase in the eight June will bring the total increase in April, May and June to 960,000 barrels per day, which represents a reflection of 44 % of the 2.2 million barrels per day, according to Reuters accounts.
Brent LCOC1 oil futures lost more than 1 % on Friday to $ 61.29 a barrel, where traders were prepared for more OPEC+oil.
Reuters said this week that the authorities of the Kingdom of Saudi Arabia, the actual leader of OPEC+, informed the allies and sectoral authorities that they were unwilling to support the oil markets with more discounts in supply.
“It seems that compliance is the main focus again, as Kazakhstan and Iraq continue to not achieve their compensation goals, along with Russia to a fewer,” said Hillima Capital Markets.
OPEC+, which includes the organization of oil -exporting countries and allies like Russia, still reduces production by about 5 million barrels per day, and many cuts must remain in effect by the end of 2026.
The group plans to hold a full ministerial meeting on May 28.
Professor says there is a structural problem in the global economy
