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.
Moldova has officially notified Russia that the Russian Cultural Center in Chișinău will be closed, with the institution expected to cease operation...
U.S. President Donald Trump said on Sunday that negotiations with Ukrainian President Volodymyr Zelenskyy to end the Russia-Ukraine war were “gettin...
Iran successfully launched three satellites on Sunday using a Russian Soyuz rocket from Russia’s Far East, marking the latest stage in growing Iran-...
Chinese Foreign Minister Wang Yi hosted Cambodian Foreign Minister Prak Sokhonn and Thai Foreign Minister Sihasak Phuangketkeow in Yunnan province on ...
More than 1,200 people have been newly displaced in Sudan’s South and North Kordofan states due to escalating insecurity, the International Organisa...
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.
New York placed the state under emergency measures on Friday as a powerful winter storm brought the heaviest snowfall since 2022, disrupting travel across the north-east of the United States.
A 7.0 magnitude earthquake struck offshore near Taiwan’s north-eastern county of Yilan late on Saturday, shaking buildings across the island, including in the capital Taipei, authorities said.
Brigitte Bardot, the French actress whose barefoot mambo in And God Created Woman propelled her to international fame and reshaped female sexuality on screen, has died at the age of 91, her foundation said on Sunday.
Iran is engaged in a “comprehensive war” with the United States, Israel, and Europe, Iranian President Masoud Pezeshkian stated on Saturday.
Japan’s tourism sector has experienced a slowdown after China’s government advised its citizens to reconsider travel to Japan, following remarks by Prime Minister Sanae Takaichi regarding Taiwan.
Chinese Foreign Minister Wang Yi hosted Cambodian Foreign Minister Prak Sokhonn and Thai Foreign Minister Sihasak Phuangketkeow in Yunnan province on Sunday, following a ceasefire that ended nearly three weeks of clashes along the Cambodia-Thailand border.
More than 1,200 people have been newly displaced in Sudan’s South and North Kordofan states due to escalating insecurity, the International Organisation for Migration (IOM) reported on Sunday.
Torrential rainfall across southern and eastern Spain over the weekend has left one person dead and two others missing, authorities said on Sunday evening, as overflowing riverbeds swept away vehicles and officials urged residents to stay indoors.
Türkiye on Sunday denied reports that a Turkish Airlines passenger flight diverted from Libya due to fears of retaliation following a Libyan military delegation plane crash near Ankara.
Gaziantep’s Panorama 25 December Museum, which commemorates the city’s resistance during Türkiye’s War of Independence, continues to attract strong public interest, with nearly 1.5 million visitors recorded in the five years since it opened.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment