OPEC+ Set for Aggressive Oil Production Boost Despite Market Concerns

OPEC+ has announced a continuation of increased oil production, with an additional 411,000 barrels per day in June, despite falling prices and demand concerns. This move follows calls from President Trump and internal pressures from Saudi Arabia to penalize non-compliant members like Iraq and Kazakhstan.

OPEC+ has decided to further escalate its oil production for a second month in a row, announcing a June increase of 411,000 barrels per day. This decision defies the backdrop of decreasing oil prices and expectations of weaker global demand, which have raised concerns within the industry.

Following a brief virtual meeting, the group, led by Saudi Arabia, declared the industry fundamentals strong despite low inventory levels. The market had experienced a slump as prices fell to a four-year low in April, influenced by OPEC+'s unexpected production boost for May and exacerbated by the economic tensions linked to U.S. tariffs under President Donald Trump.

This hike also follows Trump's direct appeals for increased production. Saudi Arabia, as a principal OPEC+ leader, has been actively encouraging the group to relax previous cuts and penalize members like Iraq and Kazakhstan for not adhering to quotas, prioritizing compliance as a key concern in recent briefings to allies.

(With inputs from agencies.)