London/Dubai: Eight OPEC+ countries meeting on Saturday have agreed to a further accelerated oil output hike for June of 411,000 barrels per day, two sources told Reuters while an online meeting of the countries was under way.
Last month, the eight countries made a larger-than-planned output hike for May, also of 411,000 bpd. Together with U.S. trade tariffs, the decision helped to drive oil prices below $60 a barrel to a four-year low.
The sources said the June increase had been agreed as the countries held an online meeting, brought forward from Monday, to decide on output.
Oil prices fell over 1% on Friday as traders braced for more OPEC+ supply when concerns of an economic slowdown caused by a trade war between the U.S. and China have prompted forecasters to lower demand growth expectations for this year.
Brent crude futures on Friday closed down 84 cents, or 1.4%, at $61.29 a barrel.
Reuters reported this week that officials from Saudi Arabia, the de facto leader of OPEC+, have briefed allies and industry officials that they are unwilling to prop up oil markets with further supply cuts.
Riyadh has been angered by Kazakhstan and Iraq producing above their OPEC+ targets, sources have said.
Analyst Helima Croft of RBC Capital Markets said earlier “discussions appear to be leaning in the direction of another three-month increase”.
“Compliance again appears to be the key focus, with Kazakhstan and Iraq continuing to miss their compensation targets, alongside Russia to a lesser extent,” Croft said further.
OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, is cutting output by over 5 million bpd and many of the cuts are due to remain in place until the end of 2026.
The group plans to hold a full ministerial meeting on May 28. (Reporting by Alex Lawler, Maha El Dahan and Ahmad Ghaddar; Writing by Alex Lawler, Editing by Barbara Lewis)
