OPEC+ to Raise Oil Production in June

OPEC+ has announced a significant increase in oil production for June 2025, raising output by 411,000 barrels per day, Orda.kz reports.

This decision comes despite falling oil prices and concerns over weakening global demand. The move is part of a broader strategy to accelerate the unwinding of previous production cuts and address compliance issues within the group.

In December 2024, eight OPEC+ countries, including Saudi Arabia and Russia, agreed to gradually phase out a 2.2 million barrels per day cut through monthly increases of about 138,000 barrels per day starting in April 2025. The June increase brings the total combined hike for April, May, and June to 960,000 barrels per day, representing a 44% reduction of the initial cut.

Saudi Arabia has been a driving force behind the accelerated production hikes, aiming to enforce stricter adherence to quotas, particularly from Iraq and Kazakhstan, which have been producing above their agreed limits.

Kazakhstan's oil production in March 2025 reached a record 2.12 million barrels per day, significantly exceeding its OPEC+ quota.

The increased production has contributed to a decline in oil prices, with Brent crude futures dropping to a four-year low of $61.29 per barrel.

Despite the price drop, OPEC+ maintains that the oil market fundamentals are healthy and inventories are low. The group plans to hold a full ministerial meeting on May 28 to assess market conditions and production policies further.

Original Author: Oksana Matvienko