OPEC+ Gears Up for Potential Bigger Oil Output Increase

OPEC+ is anticipated to discuss a potentially larger oil output increase for July at its upcoming meeting, surpassing the previous 411,000 barrels per day hikes scheduled for May and June. This move comes as eight OPEC+ members have been elevating production faster than planned, despite resulting downward pressure on oil prices.

The possibility of amplifying the output increase has gained traction, particularly following Kazakhstan's declaration on Thursday that it would not reduce its production levels. This announcement has sparked internal debates, with discussions potentially steering towards a more substantial hike in production levels during the meeting.

Although official comments from OPEC and key member nations like Saudi Arabia and Russia remain unavailable, the dynamics within OPEC+ reflect a strategic approach to managing market share and addressing rising oil demands. Previously, the group's decision to accelerate output reductions had triggered a price drop, though recovery is now evident.

(With inputs from agencies.)