RIYADH: OPEC+ countries have agreed to an oil output increase of 411,000 barrels per day (bpd) for June, marking a second consecutive monthly hike.
This decision follows a similar increase in May, when the group also raised production by 411,000 bpd.
Despite concerns over an economic slowdown due to the U.S.-China trade war, which has led to lower demand growth expectations, the OPEC+ countries decided to proceed with the output boost after an online meeting.
The eight OPEC+ members involved in this decision are Saudi Arabia, Russia, the United Arab Emirates, Iraq, Kuwait, Kazakhstan, Algeria, and Oman.
According to the group's statement, the increase is in line with the December 2024 agreement to gradually return 2.2 million bpd in voluntary adjustments starting from April 1, 2025.
The adjustment will be spread over three months, with June marking the first of these increases.
OPEC+ emphasized the flexibility of the output adjustments, stating that future increases could be paused or reversed depending on market conditions, to maintain oil market stability.
The group will meet again on June 1 to discuss production levels for July. Additionally, they reaffirmed their commitment to the Declaration of Cooperation, including voluntary production adjustments monitored by the Joint Ministerial Monitoring Committee (JMMC).
They also confirmed their intention to fully compensate for any overproduction since January 2024.
[Reported by Saudi Gazette]
