Overview

• OPEC+ has agreed to increase oil production by 411,000 barrels per day in June, following a similar rise last month.
• Global oil prices have dropped sharply, with Brent crude falling to $58.50 per barrel and WTI to $55.30, their lowest levels since early 2021.
• The decision marks a strategic shift from OPEC+’s prior cutback policy, which had reduced production by five million barrels per day since 2022.
• Saudi Arabia is leading the effort to enforce cartel discipline after members like Kazakhstan overproduced beyond agreed quotas.
• Lower oil prices are pressuring US shale producers, whose breakeven costs hover around $60 per barrel, while consumers benefit from declining fuel and heating oil prices.