London / Dubai: OPEC + agreed to speed up oil production increases for a second consecutive month, increasing production in June by 411,000 barrels per day, the group announced on Saturday, despite the drop in prices and the expectations of a lower demand.
After an online meeting lasting just over an hour, the group of producers announced the increase in supply, saying that the fundamental principles of the oil market were healthy and that the stocks were low.
Oil prices have dropped to a hollow of four years in April less than $ 60 per barrel after OPEC + announced an increase in production larger than expected for May and, as the prices of US President Donald Trump, has raised the concerns of world economic weakness.
OPEC + sources have said that Saudi Arabia pushes OPEC + to accelerate the progress of previous production reductions to punish other members of Iraq and Kazakhstan for poor compliance with their production quotas.
Hikes also follow Trump calls on OPEC + to increase production. Trump will visit Saudi Arabia later in May.
In December, eight OPEC + countries which implemented the most recent drop in production of the group of 2.2 million B / JA agreed to gradually consider the monthly increases of around 138,000 b / d in April 2025.
The increase in June compared to the eight will increase the total combined increase for April, May and June to 960,000 b / d, representing a relaxation of 44% of the decrease of 2.2 million b / d, according to reuters calculations.
Friday, Brent Crude Futures LCOC1 lost more than 1% for $ 61.29 per barrel while merchants were preparing for more OPEC +oil.
Oil prices will fall on Monday due to OPEC + news in the midst of trade tensions and economic growth concerns, UBS analyst Giovanni Staunovo said.
“We continue to call this a relaxation of the” managed “cuts and not a market share struggle,” he said.
Reuters reported this week that officials from Saudi Arabia, the de facto chief of OPEC +, informed the allies and industry officials that they do not want to support the oil markets with other supply reductions.
“Compliance again seems to be the key goal, Kazakhstan and Iraq continuing to miss their remuneration objectives, alongside Russia to a lesser extent,” said Helima Croft of RBC Capital Markets.
Kazakhstan has challenged OPEC + this month when its Minister of Energy said that it would favor national interests in those of the OPEC + group when the oil production levels are decision. Kazakhstan’s oil production has exceeded its OPEC + quota despite a decrease of 3%.
OPEC +, which includes the organization of oil exporting countries and allies such as Russia, still reduces the production of nearly 5 million b / d and numerous cuts should remain in place until the end of 2026. The group plans to hold a complete ministerial meeting on May 28.