OPEC+ Boosts Oil Production Despite Falling Prices and Global Trade Tensions

OPEC+ has decided to increase oil production by 411,000 barrels per day in June, despite expectations of weaker demand and falling prices. This move follows pressure from the U.S. and aims to phase out previous output cuts. Saudi Arabia continues to lead the efforts in balancing market shares.

OPEC+ announced on Saturday its decision to incrementally raise oil production for a second month in a row, signaling an output increase of 411,000 barrels per day in June. This development comes despite declining prices and predictions of lower demand, following a brief virtual discussion among the oil-producing coalition.

The decision is set against the backdrop of oil prices dipping to a four-year low, exacerbated by U.S.-China trade tensions provoked by the Trump administration's tariffs and an unexpectedly large production increase. Saudi Arabia, a key player in OPEC+, is pushing for quicker unwinding of previous production cuts, emphasizing adherence to agreed quotas.

Other significant factors in the mix include U.S. President Donald Trump's pleas for increased output from OPEC+ and Kazakhstan's move to prioritize national interests over group agreements. As the energy landscape continues to shift, the group's policies remain critical in navigating global oil market dynamics.

(With inputs from agencies.)