OPEC+ agrees to another rapid oil output boost for June according to sources

On Saturday, eight OPEC+ countries convened and reached an agreement to accelerate oil output for June by an additional 411,000 barrels per day, according to two sources during the ongoing online meeting.

In the previous month, the eight countries implemented a more significant output increase for May, totaling 411,000 bpd. The combination of U.S. trade tariffs and the decision contributed to pushing oil prices down to below $60 a barrel, reaching a four-year low.

According to sources, the increase in June was agreed upon during an online meeting that was rescheduled from Monday to determine output.

Oil prices declined by more than 1% on Friday as traders prepared for increased OPEC+ supply. This shift came in response to worries about an economic slowdown stemming from the trade war between the U.S. and China, leading forecasters to adjust their demand growth expectations for the year downward.

On Friday, Brent crude futures ended the day down by 84 cents, which is a decline of 1.4%, closing at $61.29 per barrel.

This week, Reuters reported that officials from Saudi Arabia, the de facto leader of OPEC+, have informed allies and industry officials of their reluctance to support oil markets through additional supply cuts.

Sources indicate that Riyadh is displeased with Kazakhstan and Iraq for exceeding their OPEC+ production targets.

Analyst Helima Croft of RBC Capital Markets stated earlier, “discussions seem to be leaning towards another three-month increase.”

“Compliance remains a central focus, as Kazakhstan and Iraq persist in falling short of their compensation targets, with Russia also lagging to a lesser degree,” Croft added.

OPEC+, comprising the Organization of the Petroleum Exporting Countries and allies like Russia, is reducing output by more than 5 million bpd, with many of these cuts expected to last until the end of 2026.

The group intends to conduct a comprehensive ministerial meeting on May 28.