OPEC+ Accelerates Oil Production Amid Falling Prices

OPEC+ will increase oil output by 411,000 barrels per day in June, despite falling prices and expected weaker demand. The decision follows online discussions and attempts to curb non-compliance by members like Iraq and Kazakhstan. The group plans further discussions on May 28.

OPEC+ has decided, for the second consecutive month, to speed up oil production increases, announcing an output hike of 411,000 barrels per day for June. This comes in the wake of falling oil prices and forecasts of diminished demand, the group revealed Saturday following a brief online meeting.

Last month, oil prices plunged to a four-year low, dropping below $60 per barrel, after OPEC+ declared a substantial production boost for May. This development, coupled with the economic concerns raised by U.S. President Donald Trump's trade tariffs, contributed to the price drop. Saudi Arabia, leading the charge within OPEC+, is keen on fast-tracking the reversal of prior output cuts, particularly to encourage better adherence among OPEC+ members like Iraq and Kazakhstan.

The production hikes respond partly to Trump's urging for increased output, with the U.S. President scheduled to visit Saudi Arabia later this month. The measures, which aim to unwind 44% of the earlier 2.2 million bpd cut, are indicative of a strategic, managed approach rather than a competitive market share battle. OPEC+ is cutting nearly 5 million bpd and intends to sustain many of these cuts through 2026, with further discussions slated for May 28.

(With inputs from agencies.)