OPEC+ agreed to raise oil production by 411,000 barrels per day in June, marking a second consecutive monthly increase despite falling prices and weakening demand forecasts. The decision followed a brief online meeting on Saturday, during which the group cited healthy market fundamentals and low inventories. The move accelerates the unwinding of the bloc's 2.2 million bpd output cut, originally agreed by eight members to be phased out through monthly hikes of around 138,000 bpd from April 2025. The combined increase for April, May, and June now totals 960,000 bpd—about 44 per cent of the cut, according to Reuters calculations. Brent crude futures dropped over 1 per cent on Friday to $61.29 a barrel, ahead of the announcement, amid trade tensions and fears of slowing global growth. UBS analyst Giovanni Staunovo expects further price pressure on Monday, calling the current approach a "managed unwind" rather than a market share battle. Saudi Arabia reportedly pushed for faster production increases to pressure non-compliant members Iraq and Kazakhstan, both of which continue to exceed quotas. Kazakhstan, whose April output surpassed targets despite a production dip, has said it will prioritise national interests. OPEC+ is still holding back nearly 5 million bpd in total, with many cuts extended through 2026. A full ministerial meeting is scheduled for May 28. Attribution: Reuters Subediting: M. S. Salama
