Oil Prices Likely To Fall? Report Says OPEC+ To Increase Output Significantly In June

The group already opted for a similar production hike of 411,000 bpd for May, a decision that, along with US trade tariffs, contributed to a steep decline in oil prices.

The oil market has remained under pressure, with traders anticipating additional supply from OPEC+ even as demand forecasts are being revised downward.

Source : Freepik

In a strategic move to address evolving market conditions, eight member nations of the OPEC+ alliance have reportedly agreed to another significant oil output hike for the month of June.

According to two sources familiar with the matter, Reuters reported that the group has settled on an increase of 411,000 barrels per day (bpd), continuing the pace set by the previous month.

The agreement was reached during a virtual session that was convened ahead of its originally scheduled date.

The same group already opted for a similar production hike of 411,000 bpd for May, a decision that, along with US trade tariffs, contributed to a steep decline in oil prices. As a result, prices dipped to a four-year low, falling below the $60-per-barrel mark.

Market Pressure Mounts Amid Weak Demand Outlook

The oil market has remained under pressure, with traders anticipating additional supply from OPEC+ even as demand forecasts are being revised downward. Concerns over a potential economic slowdown, triggered by ongoing trade tensions between the United States and China, have led analysts to trim expectations for global oil consumption in 2025.

On Friday, Brent crude futures dropped 84 cents, or 1.4 per cent, settling at $61.29 per barrel. The decline reflected broader market anxiety over excess supply and waning demand.

Meanwhile, internal discord within the group continued to surface. Riyadh, which leads OPEC+, has reportedly grown frustrated with members like Iraq and Kazakhstan for exceeding their agreed production quotas. "Compliance again appears to be the key focus, with Kazakhstan and Iraq continuing to miss their compensation targets, alongside Russia to a lesser extent," said Helima Croft of RBC Capital Markets. She added, "Discussions appear to be leaning in the direction of another three-month increase."

Despite these challenges, OPEC+ is still committed to maintaining significant production cuts. The alliance, comprising the Organisation of the Petroleum Exporting Countries and partners like Russia, is currently curbing output by more than 5 million bpd—a policy expected to stay in place through the end of 2026. A full ministerial meeting to review progress and future strategy is scheduled for May 28.