OPEC+ considers boosting oil output amid price volatility
OPEC+ is considering a significant increase in oil production by 411,000 barrels at its June meeting. This marks the third consecutive month the cartel contemplates a greater supply, aiming to maintain its market share.
OPEC+ is engaged in intensive discussions about a potential increase in oil production at the meeting scheduled for June 1st. According to Bloomberg, this decision would be the cartel's third consecutive month of increasing the supply.
Bloomberg reports that one of the options being considered is raising production in July by 411,000 barrels per day, which is three times the initial assumptions and simultaneously corresponds to about 1% of the current OPEC+ production.
This action aims to maintain market share for the largest producers and penalize cartel members who do not adhere to the established production limits.
However, some commentators suggest that the cartel's actions are intended to appease President Donald Trump. Since the start of Trump's trade war in April, OPEC+ unexpectedly decided to increase production.
This impacted oil prices, sending the commodity to its lowest level in four years, close to $60 per barrel in London. Futures contracts have since rebounded as the White House rolled back some of its tariffs. Nevertheless, Bloomberg assesses that many forecasters now have pessimistic projections for the market this year.
In the oil market, June contracts for American WTI crude are down by 1.6% to $60.58 per barrel, while July futures for the popular Brent crude are up by 1.55% to $63.91 per barrel.
