Multiple nations within the Organization of the Petroleum Exporting Countries (OPEC) are expected to advocate for a faster increase in oil production for June, marking the second straight month of accelerated output hikes, according to three unnamed sources cited by Reuters.
Oil prices plunged to their lowest level in four years during April, driven by ongoing U.S.-China trade tensions and a surprise move by OPEC+—a coalition including OPEC members and allies like Russia—to raise production by 411,000 barrels per day in May. This figure tripled the group’s initial target, exacerbating market instability.
OPEC+ representatives from eight countries will convene on May 5 to finalize June’s production strategy. The anonymous sources revealed that certain members aim to replicate May’s elevated output levels, a proposal that has already fueled disagreements between nations adhering to prior agreements and those overshooting production quotas.
Neither OPEC officials nor Saudi Arabian authorities provided immediate comments in response to Reuters’ inquiries.
WHAT YOU SHOULD KNOW
The proposed June 2025 output hike reflects a complex interplay of internal OPEC+ tensions, U.S. geopolitical influence, and economic headwinds from the U.S.-China trade war.
Saudi Arabia’s apparent shift toward prioritizing market share over price stability could reshape the oil market, risking a price war that tests the resilience of producers and the cohesion of OPEC+.
The May 5 meeting will be a litmus test for the group’s unity and strategy.
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