Oil prices jump after OPEC+ decision to increase production by 411,000 barrels
Oil prices rose more than $1 per barrel after OPEC+ producers agreed to increase oil production by 411,000 barrels per day starting in July, Reuters reported.
Brent crude futures rose $1.46, or 2.33%, to $64.24 a barrel after falling 0.9% on Friday, May 30.
US West Texas Intermediate crude is trading at $62.45 per barrel, up $1.66, or 2.73%, from the previous session, when it fell 0.3%.
OPEC+ was expected to decide on even higher volumes. Oil traders said that the increase in production by 411,000 barrels per day has already been factored into Brent and WTI futures.
The focus has been on OPEC+ members that have been systematically violating their quotas, including Iraq and Kazakhstan. Kazakhstan has refused to cut production despite the cartel's demands.
Goldman Sachs analysts expect a similar increase in production (another 410,000 barrels per day) in August. They predict that demand will remain strong due to the summer season and increased economic activity.
Meanwhile, low fuel inventories in the US have raised concerns about supplies ahead of an expected above-average hurricane season, analysts said.
Traders are also closely watching the impact of falling prices on U.S. oil production, which hit a record high of 13.49 million barrels per day in March.
At the same time, the number of rigs in the US is decreasing – last week it fell to 461, the lowest figure since November 2021.
- The fall in world oil prices has already forced Russia to revise its budget , which included more expensive oil.
