Overview
- OPEC+ approved a 411,000 barrels per day production increase for June, nearly triple the originally planned hike.
- The move is part of a strategy led by Saudi Arabia to discipline members like Iraq and Kazakhstan for exceeding their production quotas.
- The group may accelerate the reversal of 2.2 million barrels per day in voluntary cuts by October if compliance does not improve.
- Oil prices have dropped to around $58 per barrel, the lowest since early 2021, due to oversupply, weak demand, and U.S. tariffs.
- Major oil firms, including Chevron, are adjusting strategies, with Chevron reducing share buybacks in response to market softness.