RIYADH — The OPEC+ countries have agreed on Saturday to an oil output hike for a second month in a row in June with 411,000 barrels per day. Last month, the eight OPEC+ countries made a larger-than-planned production increase for May, also of 411,000 bpd. Oil prices fell over one percent 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. The June increase had been agreed as the OPEC+ countries held an online meeting to decide on output. The eight OPEC+ countries are Saudi Arabia, Russia, the United Arab Emirates, Iraq, Kuwait, Kazakhstan, Algeria and Oman. "In view of the current healthy market fundamentals, as reflected in the low oil inventories, and in accordance with the decision agreed upon on December 5, 2024, to start a gradual and flexible return of the 2.2 million barrels per day voluntary adjustments starting from April 1, 2025, the eight participating countries will implement a production adjustment of 411,000 barrels per day in June 2025 from May 2025 required production level. This is equivalent to three monthly increments," the group said in a statement. OPEC+ said this measure will provide an opportunity for the participating countries to accelerate their compensation. "The gradual increases may be paused or reversed subject to evolving market conditions. This flexibility will allow the group to continue to support oil market stability," the statement pointed out. The group will meet on June 1 to decide on July production levels. The OPEC+ countries reiterated their collective commitment to achieve full conformity with the Declaration of Cooperation, including the additional voluntary production adjustments that were agreed to be monitored by the Joint Ministerial Monitoring Committee (JMMC) during its 53rd meeting held on April 3, 2024. They also confirmed their intention to fully compensate for any overproduced volume since January 2024.
