Overview

• OPEC+ announced a second consecutive monthly production hike of 411,000 barrels per day for June, bringing total increases since April to 960,000 barrels per day.
• Oil prices initially fell to four-year lows, with Brent trading under $60 per barrel and WTI below $56, before rebounding slightly on technical factors and bargain buying.
• Major banks, including Goldman Sachs and Morgan Stanley, have revised down their oil price forecasts, citing oversupply concerns and demand risks from U.S. trade policies.
• Saudi Arabia is reportedly driving the accelerated production increases to enforce quota compliance among OPEC+ members and challenge U.S. shale producers.
• Global economic uncertainties, fueled by trade wars and recession fears, continue to weigh on oil demand forecasts and market sentiment.