RESEARCH
OPEC and allies may hike production in June as well - Commerzbank
This story was originally published at 15:37 IST on 25 April 2025
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MUMBAI – The Organization of the Petroleum Exporting Countries and its allies may increase oil production in June as well, after deciding to raise it in May, Commerzbank Research said in a note on Friday, citing a Reuters report.
In its meeting on Apr. 3, the grouping had decided to increase the aggregate output 411,000 barrels per day from May. The increase in June may be higher, the note said. Earlier, countries of the group had decided to adopt voluntary production cuts to ensure stability of oil prices.
The joint ministerial monitoring committee of OPEC is scheduled to hold its next meeting on May 28.
Even though these are as yet unconfirmed reports, the cracks within the production cartel are apparently getting larger, Carsten Fritsch, the author of the note, poined out.
"Kazakhstan wants to prioritise its national interests over the interests of OPEC+ when deciding on oil production. The new Kazakh energy minister justified this by saying that the western oil companies operating in the country could not be forced to cut production," the note read.
"Given this situation, it is hardly conceivable that Kazakhstan will limit oil production as planned, let alone compensate for the current overproduction with larger production cuts."
The note also pointed out that if Kazakhstan continues to violate the OPEC+ agreement, it could result in a further increase in production by the other countries out of anger, which would put more pressure on oil prices. End
Reported by Abhijit Doshi
Edited by Avishek Dutta
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