OPEC+ Meeting Scheduled for May 3 to Determine June Production Policy
OPEC+ Countries to Meet for Critical Oil Production Decisions
Eight member countries of the OPEC+ alliance are set to convene on Saturday to deliberate on potential changes to oil output for June. According to two sources familiar with the situation, the meeting was moved up from its original date of May 5, although the reason for this change remains unclear.
In recent discussions, Saudi Arabia has advocated for a substantial increase in oil production among the eight members, a move that has already contributed to a decline in oil prices. Last month, a push for a larger-than-anticipated output hike resulted in prices falling below $60 per barrel, marking a four-year low.
The group is now expected to propose raising output by 411,000 barrels per day (bpd)—a figure three times greater than what was agreed upon in December. However, tensions have emerged due to Kazakhstan and Iraq exceeding their respective OPEC+ production targets, which has reportedly frustrated Saudi officials.
This week, oil prices dipped below the $60 threshold once again, partly due to reports indicating that Saudi officials are prepared to endure lower oil prices for an extended period.
Currently, OPEC+ is implementing a production cut exceeding 5 million bpd. The alliance plans to hold a comprehensive ministerial meeting on May 28 to further assess their strategies and production levels moving forward.
As the global oil market grapples with these developments, stakeholders will be watching closely for the outcomes of Saturday’s meeting and its implications for future pricing and production strategies.
