OPEC+, a collaboration between OPEC and other oil-producing nations led by Russia, will introduce a 411,000 barrels per day (bbl/d) hike in its production in June, mirroring the surge it adopted in May.

This comes as per the group’s agreement in December 2024 to gradually phase out the 2.2 million bbl/d output cut through monthly increases starting April 2025.With the surge in June’s output, the overall increase in daily output since April hovers around 960,000 bbl/day, according to Reuters calculations.

The gradual increases may be paused or reversed subject to evolving market conditions, according to an OPEC+ statement that was released after a virtual meeting of the group’s member countries.

 This flexibility will allow the group to continue to support oil market stability and will provide an opportunity for the participating countries to accelerate their compensation, said the statement. 

The decision to increase production, despite the decline in oil prices, is seen by observers as a means to punish the members that did not abide by the previous decision to cut output, leading to a drop in prices.