Sunday 04/May/2025 – 02:38 PM
Analysts in the oil and energy sector expected the continued decline in global oil prices, after 8 countries from the OPEC+ members announced a sudden increase in crude oil production during the month of June 2025 by 411 thousand barrels per day, which led to a decline in prices to unprecedented levels four years ago.
Expectations for oil prices to decline for less than $ 60 a barrel after OPEC+ decision
Saudi Arabia and Russia announced, along with 6 other countries affiliated with the coalition, the implementation of the same production increased in May, to be higher than the original plan that stipulated an increase of 137 thousand barrels per day only, according to a CNN report quoting an official statement from OPEC+.
May also witnessed these countries exceeding their planned quotas, raising production by 411 thousand barrels per day, which coincided with the United States imposing new customs duties, which contributed to the decline in prices below $ 60 a barrel – the lowest level since April 2021.
In this context, George Lyon, First Vice President of Oil Markets of Restad Energy, said that the continuation of this increase in production may lead to further pressure on prices, expected to decrease to less than $ 60 in the short term.
According to Standard & Poor’s Global Commonie Insights, Brent crude on May 2 was $ 61,405 a barrel, which is the lowest in 3 years.
The OPEC+ alliance is scheduled to hold an expanded ministerial meeting on May 28, as the ministers will discuss market developments, in addition to the policy of voluntary and compulsory discounts, which are currently 3.6 million barrels per day, and it is intended to continue to work until the end of 2026.
