A source told Reuters that several OPEC Plus coalitions agreed during a meeting today, Saturday, to another increase in oil production for next June by 411 thousand barrels per day.
Prior to the start of the eight countries in the Internet in the OPEC Plus coalition today, Saturday, four well -informed sources told Reuters that the combined countries are likely to agree to accelerate another oil production for the month of June.
This will be the latest step in the gradual disposal plan from the production discounts applied by the group. Last month, the eight countries increased production by a greater rate of planning up to 411 thousand barrels per day for May.
This decision, in addition to the American customs duties, contributed to pressure on oil prices to land below $ 60 a barrel, its lowest level in four years.
Oil prices folded by more than 1% on Friday, with markets alert to increase OPEC Plus supplies, while fears of economic slowdown caused by the trade war between the United States and China pushed experts to anticipate the expectation of demand growth expectations for this year.
Brent crude futures fell in trading yesterday, Friday, 84 cents, or 1.4%, to $ 61.29 a barrel upon settlement.
Reuters quoted sources last week that Saudi officials informed allies and experts in the oil sector that the Kingdom does not want to support the oil market with more production discounts.
Sources said that Riyadh is angry because of the production of Kazakhstan and Iraq, oil at rates exceeding the goals set by OPEC Plus.
Halima Cruvelt, an analyst at RBC Capital Markets, said she did not believe that a final decision has been made, but “it seems that the discussions are heading towards another three -month increase.”
“Once again, the commitment appears to be the main focus axis, with Kazakhstan and Iraq continue to not achieve their goals for compensation, along with Russia with a lesser extent,” she added.
OPEC Plus, which includes the Organization of Petroleum Exporting Countries (OPEC) and allies such as Russia, decreases its production by more than 5 million barrels per day, and it is scheduled to continue to apply many discounts until the end of 2026.
The group intends to hold a ministerial meeting on May 28.
A second increase in supplies
Yesterday, the Bank of Goldman Sachs said it expected to announce the meeting of the eight countries in the OPEC Plus coalition, a second consecutive increase in supplies for the month of June.
The bank added that its expectations are caused by the humble commitment from Kazakhstan, the stocks of the Organization for Economic Cooperation and the Less than expected development, and the ability of Saudi Arabia to deal with low oil prices.
Goldman Sachs said that his previous forecast for OPEC relied on a significant increase in commitment to production discounts, but Kazakhstan’s commitment increased only modestly.
Moreover, stocks in the countries of the Organization for Economic Cooperation and Development in April came less than the bank’s expectations of about 28 million barrels due to the lack of supplies from Venezuela and shale oil in the United States.
The bank said in the memo that Saudi Arabia also indicated that it is able to bear the low oil prices, which is consistent with the research of economists in Goldman Sachs.
Oil prices fell 8% last week, recording its largest weekly losses since the end of March before the OPEC Plus meeting, with Brent crude futures declining to $ 61.29 a barrel upon settlement Friday and the declining futures for West Texas Intermediate crude declined to $ 58.29 a barrel.
The bank kept its expectations for the average price of Brent and West Texas West Texas at 63 and 59 dollars a barrel, respectively, in the remaining period of 2025, and at 58 and 55 dollars, respectively in 2026.
He added that it is still expected that the global slowdown or the complete retreat of OPEC Plus voluntary discounts of 2.2 million barrels per day will lead to the price of Brent crude between 40 and 49 dollars in 2026 and less than 40 dollars in a more severe and less likely scenario.
