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OPEC+ Between Cuts and Gains

Prices fall amid talk of additional pumping

OPEC+ Developments and Their Impact on Oil Prices As we noted in our previous article on May 21, oil prices were stable around $62.40 per barrel, as markets awaited supply data and OPEC+ trends. Extension of Production Cuts In a move aimed at supporting market stability, the OPEC+ alliance announced on Thursday, May 22, an extension of production cuts of 2.2 million barrels per day until the end of 2025. The phase-out of these cuts is scheduled to begin in April 2025, with monthly increments of 138,000 barrels per day, lasting until September 2026.

Possible Production Increase

Despite the extension, OPEC+ is currently considering increasing production by 411,000 barrels per day in July at a meeting scheduled for June 1. This move comes amid rising crude oil inventories in the United States and declining demand from China, which has led to oil prices falling to their lowest levels in two weeks.

Market Impacts

These developments have led to a decline in oil prices, with Brent crude falling below $64 per barrel and West Texas Intermediate crude falling below $61. The market is heading for its first weekly decline in three weeks, amid concerns about a supply glut and slowing global demand.

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