The OPEC+ alliance announced on Saturday it will increase oil production by 411,000 barrels per day (bpd) in June, marking the second consecutive month of accelerated output hikes despite falling prices and dimming demand forecasts.
The decision was made following a virtual meeting lasting just over an hour. In a statement, the group asserted that market fundamentals remain healthy and global oil inventories are low, justifying the continued unwind of earlier production cuts.
The increase comes as Brent crude prices have dropped to a four-year low, closing at $61.29 per barrel on Friday, driven in part by fears of economic slowdown linked to new U.S. tariffs imposed by President Donald Trump and surplus concerns following OPEC+’s larger-than-expected May supply boost.
Strategic Shift and Internal Tensions
Saturday’s decision follows rising pressure from Saudi Arabia, OPEC+’s de facto leader, to accelerate the rollback of previous output cuts, particularly targeting Iraq and Kazakhstan for repeated non-compliance with production quotas.
According to sources within the group, Riyadh is keen to discipline underperforming members by pushing the broader coalition toward faster normalization of production levels. The push also aligns with calls from President Trump, who is set to visit Saudi Arabia later this month, urging OPEC+ to help ease energy prices.
The June output increase forms part of a gradual phase-out of a 2.2 million bpd production cut agreed by eight OPEC+ members in December. These members committed to monthly hikes of about 138,000 bpd starting April 2025. With the upcoming increase, combined hikes for April, May, and June will total 960,000 bpd, unwinding roughly 44% of the original cut, according to Reuters calculations.
Market Reaction and Outlook
Oil markets are expected to react sharply when trading resumes on Monday. Analysts at UBS predict further price declines amid mounting concerns over a global supply glut and fragile demand outlook.
“We continue to call this a ‘managed’ unwind of cuts and not a fight for market share,” said Giovanni Staunovo, commodity analyst at UBS, reflecting a cautious interpretation of OPEC+’s approach.
Kazakhstan’s recent defiance—producing above its quota and prioritizing domestic interests—has fueled internal tensions. Meanwhile, Russia, though closer to compliance, continues to underperform on agreed targets. Helima Croft of RBC Capital Markets noted that “compliance again appears to be the key focus,” as the group eyes broader discipline ahead of its next ministerial meeting on May 28.
Despite the recent increases, OPEC+ is still collectively cutting nearly 5 million bpd, with many of those reductions scheduled to remain until end-2026.
Kuwait’s oil minister stated that Saturday’s decisions would play a “significant role” in shaping future policy, signaling that more recalibrations could follow depending on market developments and member compliance.
The British embassy in Tehran has been temporarily closed, with services now operating remotely, the government announced Wednesday....
The United States has announced an indefinite suspension of immigrant visa processing from 75 countries, expanding President Donald Trump’s crackdow...
Denmark has announced an immediate increase in its military presence in Greenland, citing growing security tensions in the Arctic....
U.S. President Donald Trump said on Wednesday that he has been informed the killing of anti-government protesters in Iran has stopped and that planned...
Direct communication between senior U.S. and Iranian officials has broken down as tensions rise over Tehran’s crackdown on protests and fears of U.S...
OPEC+ is expected to maintain its current oil production levels at meetings scheduled for Sunday, as the alliance weighs the risks of an emerging supply glut against ongoing geopolitical uncertainty, four OPEC+ sources told reporters this week.
The Organization of Petroleum exporting countries OPEC+ is likely to consider a larger oil production increase of 411,000 barrels per day for November at its meeting next Sunday as rising oil prices encourage the group to try to regain more market share, said sources familiar with the talks.
Crude oil flowed on Saturday (27 September) through a pipeline from the semi-autonomous Kurdistan region in northern Iraq to Türkiye for the first time in two-and-a-half years, after an interim deal broke the deadlock, Iraq's oil ministry said.
World oil supply is expected to grow more rapidly this year, with a surplus potentially expanding in 2026 as OPEC+ members increase output and production from non-OPEC countries rises, according to the International Energy Agency (IEA). This contrasts with OPEC's revised outlook.
The Trump administration will suspend all visa processing for visitors from 75 countries beginning 21 January 2026, according to a State Department memo reported by media.
The U.S. has issued an urgent security notice calling all American citizens to leave Iran immediately, citing escalating protests, growing violence and widespread communication shutdowns across the country.
Apple will use Google’s Gemini artificial intelligence (AI) models for its revamped Siri voice assistant later this year, in a multi-year deal that strengthens the tech giants’ partnership and boosts Alphabet’s position in the race against OpenAI.
Israel and Arab States have urged the U.S. to delay any potential military action against Iran, warning that such a move could undermine ongoing protests inside the country, according to NBC News.
Sweden is sending a group of military officers to Greenland at Denmark’s request, Prime Minister Ulf Kristersson said on Wednesday, as Nordic countries and NATO allies step up coordination around the Arctic territory.
Venezuela’s acting President Delcy Rodríguez said Wednesday that her government will continue releasing prisoners detained under former President Nicolás Maduro, calling it part of a “new political moment” since his ouster by the United States earlier this month.
The U.S. and UK are reducing personnel at Qatar’s Al-Udeid air base as President Donald Trump weighs possible action against Iran over its violent crackdown on protesters.
The United Nations has called on Uganda to lift a nationwide internet blackout ahead of Thursday’s general election, describing the restrictions as “deeply worrying.”
Whole milk is heading back to school cafeterias across the U.S. after President Donald Trump signed a bill overturning Obama-era limits on higher-fat milk options.
NASA is carrying out the first emergency return in International Space Station history after an astronaut aboard Crew-11 suffered a serious medical condition.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment