OPEC+ Cranks Up the Taps: June Oil Production Hike Sparks Market Jitters

Oil cartel OPEC+ just flipped the ’on’ switch—June output climbs despite shaky demand forecasts. Traders brace for volatility as supply dynamics shift overnight.

Behind the decision: A calculated gamble that summer travel and industrial activity will soak up the extra barrels. Or maybe they’re just tired of watching crypto outshine commodities.

One thing’s certain: The usual suspects—hedge funds and energy ETFs—are already positioning for the rollercoaster. Because nothing says ’stable market’ like fossil fuels meets algorithmic trading.

The oil cartel declared the supply increase, stating that the oil market’s fundamentals are sound and inventories are relatively low following an hour-long online meeting.

After OPEC+ announced a higher-than-anticipated production boost for May, oil prices fell to a four-year low in April, dropping below $60 per barrel.

Meanwhile, President Donald Trump’s tariffs raised concerns about a faltering world economy. OPEC+ sources claim that Saudi Arabia is pressuring the group to swiftly reverse earlier output cuts to penalize countries like Iraq and Kazakhstan for failing to meet their production goals.

Trump’s calls for OPEC+ to increase output prompted these hikes. Trump is scheduled to travel to Saudi Arabia later in May. Eight OPEC+ nations agreed in December to progressively phase out the group’s most recent output cut of 2.2 million barrels per day starting in April 2025, with monthly increases of roughly 138,000 barrels per day.

According to calculations by Reuters, the June increase from the eight will total 960,000 bpd for April, May, and June, representing a 44 percent unwinding of the 2.2 million bpd cut..