OPEC+ is poised to make another significant move in global oil markets, with members deliberating a substantial production increase at their upcoming June 1 meeting, according to Bloomberg News.
The group, led by Saudi Arabia and Russia, is discussing a potential hike of 411,000 barrels per day (bpd) for July, sources familiar with the talks revealed.
While no final decision has been reached, this proposal follows a series of accelerated output increases that could see the group unwind its 2.2 million bpd voluntary cuts by November, Reuters reported earlier this month.
The proposed July increase mirrors recent moves by OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies like Russia.
In April and May, the group shocked markets by boosting production by 411,000 bpd each month, triple the initially planned increments, despite weakening oil prices and sluggish global demand.
These decisions, driven in part by Saudi Arabia’s frustration with non-compliant members like Iraq and Kazakhstan, have pushed Brent crude prices to a four-year low of $60.23 per barrel and U.S. crude to $57.13, according to market data from May 4.
Saudi Arabia’s push for these hikes signals a shift in strategy, with the kingdom unwilling to bear the burden of propping up oil prices alone. “OPEC+ is sending a clear message: comply with quotas or face a supply surge,” said Amrita Sen, co-founder of Energy Aspects.
The group’s focus on discipline comes as oil prices face pressure from U.S. President Donald Trump’s tariffs and fears of a global economic slowdown. Analysts at Barclays and ING have slashed Brent crude forecasts to $66 and $65 per barrel for 2025, respectively, citing rising global inventories and weaker demand.
The June 1 meeting, expected to be held virtually, will be critical in shaping oil market dynamics. While the 411,000 bpd hike for July is under consideration, delegates cautioned that the decision remains fluid, with the group retaining flexibility to pause or reverse increases based on market conditions.
OPEC+ currently maintains output cuts totaling 5.85 million bpd, or roughly 5.7% of global supply, with 3.65 million bpd of those cuts set to continue until the end of 2026.
WHAT YOU SHOULD KNOW
As oil prices hover near multi-year lows, the outcome of the meeting could further depress prices or stabilize the market, depending on the group’s final call.
ALSO READ TOP STORIES FROM VERILY NEWS
