OPEC+ to Increase Oil Production by 411,000 Bpd in May

OPEC+ countries agreed on Thursday to proceed with a plan to increase oil production by 411,000 barrels per day in May, an unexpected move that sent oil prices further lower.

Oil prices, which had already fallen more than 4% following US President Donald Trump's announcement of tariffs on trading partners, fell, with Brent crude falling more than 5% to near $70 a barrel after the OPEC+ statement.

OPEC+ were scheduled to increase their production by 135,000 barrels per day in May as part of a plan to gradually ease their latest production cuts.

However, after a virtual meeting of the eight countries, OPEC announced that production would increase by 411,000 barrels per day in May, citing "continued strong market fundamentals and a positive market outlook."

The organization added that this decision includes "pre-scheduled increases for May, in addition to two monthly increases," noting that these increases may be "paused or reversed depending on changing market conditions."

This increase is part of a plan agreed upon by Russia, Saudi Arabia, the United Arab Emirates, Kuwait, Iraq, Algeria, Kazakhstan, and Oman, which aims to gradually ease the 2.2 million barrels per day (bpd) production cut that came into effect this month.

OPEC+ confirmed that the 8 countries will meet on May 5 to decide on June production. The group will also continue implementing additional production cuts of 3.65 million bpd until the end of next year to support the market.