OPEC+ Boosts Oil Output Amid Global Economic Concerns

OPEC+ agrees to increase oil production by 411,000 barrels per day in June, following calls from President Trump and amid falling oil prices and economic concerns. The decision represents a 44% unwinding of previous cuts. Saudi Arabia pushes for the acceleration, and compliance remains a key focus.

OPEC+ has decided to boost its oil output in June by 411,000 barrels per day, marking the second month of consecutive increases. This decision comes despite falling prices and weaker demand expectations, as announced after an online meeting.

Oil prices hit a four-year low below $60 a barrel in April, following OPEC+'s larger-than-expected production boost for May, alongside U.S. President Donald Trump's tariff impositions, which raised global economic concerns. Inside sources indicate that Saudi Arabia is pressuring OPEC+ to hasten the reduction of earlier output cuts, targeting Iraq and Kazakhstan for low compliance.

This production hike follows President Trump's request for increased output. Trump's scheduled visit to Saudi Arabia in May further emphasizes the political influences in play. The ongoing adjustments will see a 44% reduction of the previous 2.2 million bpd cut by June's end. Market analysts like UBS's Giovanni Staunovo view this as a managed reduction in cuts.

(With inputs from agencies.)