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OPEC+ agrees another accelerated oil output hike for June

Date: May 3, 2025

OPEC+ has agreed to accelerate oil production hikes for a second consecutive month, raising output in June by 411 000 barrels per day, the group said on Saturday, despite falling prices and expectations of weaker demand.

Following a short online meeting, the producer group announced the supply increase, saying the fundamentals of the oil market were healthy.

Oil prices fell to a four-year low in April below $60 per barrel after OPEC+ announced a bigger-than-expected production boost for May, and as United States President Donald Trump's tariffs raised concern about global economic weakness.

OPEC+ sources have said Saudi Arabia is pushing OPEC+ to accelerate the unwinding of earlier output cuts to punish fellow members Iraq and Kazakhstan for poor compliance with their production quotas.

The hikes also follow calls from Trump on OPEC+ to raise output. Trump will visit Saudi Arabia later in May.

In December, eight OPEC+ countries that have been implementing the group's most recent output cut of 2.2 million bpd agreed to gradually phase it out in monthly increases of about 138 000 bpd from April 2025.

The June increase from the eight will take the total combined hike for April, May and June to 960 000 bpd, representing a 44% unwinding of the 2.2 million bpd cut, according to Reuters calculations.

--Reuters--