The Organization of the Petroleum Exporting Countries and allies (OPEC+) agreed to accelerate oil production hikes for a second consecutive month, raising output in June by 411,000 barrels per day (bpd). Citing five sources, Reuters reported that this could bring back to the market as much as 2.2 million barrels per day by November.
The June increase from the eight will take the total combined hikes for April, May and June to 960,000 bpd, representing a 44% unwinding of the 2.2 million bpd of various cuts agreed on since 2022, according to Reuters calculations.
The decision follows a surprise move in April by agreeing to a bigger-than-expected output hike for May despite weak prices and slowing demand.
Market reaction
At the time of press, the WTI price was down 4.34% on the day at $55.65.
