Bloomberg: “OPEC+” discusses the increase of June production by 400 thousand barrels

Representatives reported that the main “OPEC+” coalition countries discuss another increase in production by 400 thousand barrels per day in June, before the video conference to determine the policy tomorrow, Saturday.

The meeting, which was scheduled to be held on May 5, may determine the course of oil prices for the coming weeks, as the majority of traders whose views “Bloomberg” have expected another increase in supplies by the coalition.

Last month, the “OPEC+” coalition led by Saudi Arabia and Russia, oil dealers, surprised its decision to re -pump 411 thousand barrels per day in May “three times the size planned at first” in a move that the delegates said to be aimed at punishing members who produce more than their share such as Kazakhstan and Iraq by lowering prices.

Oil prices fell at the end of a week that witnessed severe fluctuations, as customers balanced the possibility of increasing supplies from the “OPEC+” alliance and the risks of the trade war on demand, in exchange for a new threat to impose US sanctions on Iranian oil exports.

Brent crude decreased to below $ 62 a barrel, heading towards a weekly loss of more than 7%, while the West Texas West Crude settled near 59 dollars.

Penalties on Iran

In the United States, President Donald Trump said he would impose secondary sanctions on any countries or companies that buy Iranian oil, which increases pressure on Tehran after nuclear talks stalled with Washington. This threat led to the rise in oil prices in a session on Thursday.

Oil has lost nearly one -fifth of its value since the beginning of the year, to reach its lowest level in four years, in light of the Trump administration seeking to reshape the global commercial system by imposing customs duties, which raised fears that this would lead to pushing the global economy towards stagnation, and thus harm to demand for energy.

The American economy shrinks in the first quarter

The data issued this week strengthened those concerns, as the numbers showed the contraction of the American economy in the first quarter, as well as a weakness in the Chinese manufacturing sector.

OPEC+movements have strengthened to restart the suspended large productive capabilities, of concerns that the global supply will exceed the demand during 2025.

According to a poll conducted by “Bloomberg”, customers expect that the coalition will decide a new increase in production. Earlier last month, “OPEC+” surprised the markets when he agreed to pump 411 thousand barrels per day in May, which represents three times the size planned in the beginning.