OPEC+ has agreed to increase oil production in June, a move that could put added pressure on Russia’s war-funded economy, according to a May 4 Reuters report.
The decision was made during a May 3 meeting of the oil-producing alliance, which includes core OPEC members like Saudi Arabia and Iran, as well as additional countries such as Russia, Kazakhstan, and Brazil.
Sources within the group said OPEC+ may fully reverse the current 2.2 million barrels per day of voluntary production cuts by the end of October. The next step is a planned hike of 411,000 barrels per day in June.
Russia, which relies on oil revenues for roughly 30% of its state budget, could face fresh economic challenges if global oil prices fall. Moscow has used oil sales to support its military campaign in Ukraine, and lower prices could limit its ability to fund the war.
Saudi Arabia has pushed for higher production, partly in response to ongoing non-compliance by members such as Kazakhstan and Iraq. An unnamed source told Reuters that Saudi officials warned against continued violations during the May 3 meeting.
If non-compliance persists, OPEC+ is expected to approve further output increases in the coming months, according to multiple sources.
Meanwhile, former U.S. President Donald Trump weighed in on the issue during a January appearance at the World Economic Forum in Davos. Speaking via videolink, Trump said he would urge OPEC to lower oil prices, arguing that cheaper oil would quickly end the war in Ukraine.
“If the price came down, the Russia-Ukraine war would end immediately,” Trump said. “Right now the price is high enough that that war will continue.”
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