OPEC+ accelerates oil output hike, driving prices lower

OPEC+ unexpectedly announced a larger-than-planned oil production increase of 411,000 barrels per day (bpd) in May, surpassing the originally scheduled 135,000 bpd hike. The decision, citing “healthy market fundamentals,” sent Brent crude tumbling over 6 per cent towards $70 per barrel.

The move is part of OPEC+’s gradual rollback of a 2.2 million bpd production cut introduced this month, while 3.65 million bpd in additional cuts remain in place until the end of 2025. The decision also underscores a push for compliance, particularly targeting Kazakhstan, which has exceeded its output quota.

Attribution: Reuters
Subediting: M. S. Salama