OPEC+ countries agreed on May 3 to accelerate oil output growth for a second consecutive month, increasing output by 411,000 barrels per day in June despite falling prices and expectations of weaker demand.
After an online meeting that lasted just over an hour, it was reported that supplies were increasing and that oil market fundamentals were healthy and inventories were low.
Oil production in selected countries in June, thousands of barrels per day. Infographic: OPEC+.
Oil prices fell to a four-year low, below USD 60 a barrel, in April after OPEC+ announced a larger-than-expected increase in output in May and US President Donald Trump’s tariffs increased concerns about the weakness of the global economy.
The increase also followed Trump’s calls for OPEC+ to increase production. Trump will visit Saudi Arabia later in May.
In December, the eight OPEC+ countries, which agreed in April 2024 to cut the group’s output by 2.2 million barrels per day, agreed to phase it out by increasing production by 138,000 barrels per day each month from April 2025.
In April, the increase was 138,000, but May and June are scheduled to increase by 411,000 each.
Brent crude futures fell more than 1% to USD 61.29 a barrel on May 2, as traders braced for an increase in OPEC+ oil supplies.
Oil price dynamics. Infographics: OPEC+.
Oil prices are expected to fall on Monday, May 5, on the back of OPEC+ news amid trade tensions and concerns about economic growth.
In late April, Reuters reported that officials from Saudi Arabia, the de facto leader of OPEC+, had told allies and industry officials that they had no intention of supporting oil markets with further supply cuts.
Kazakhstan challenged OPEC+ when its energy minister said he would prioritize national interests over OPEC+ interests when deciding on oil production levels. Kazakhstan’s oil output exceeded the OPEC+ quota in April, despite a 3% drop.
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