Oil Prices Fall to Lowest Levels Since April: Oil prices sharply declined during Monday’s trading session
Following OPEC+’s announcement to accelerate production increases, raising market concerns over a supply glut.
Meanwhile, escalating geopolitical tensions in the Middle East added further pressure on prices.

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Details

The eight-member countries of the OPEC+ alliance — led by Saudi Arabia, Russia, the UAE, and Iraq —
held a virtual meeting on Saturday, May 3, to review recent oil market developments and future forecasts.

Based on positive indicators, particularly a drop in petroleum inventories,
The group decided to implement a production increase of 411,000 barrels per day during June 2025,
compared to the required production level for May.

This increase is part of a broader plan to gradually restore voluntary production adjustments,
originally agreed upon in December 2024.
The plan aims to recover 2.2 million barrels daily in phases starting in April 2025.

The alliance emphasized that these increases remain flexible and subject
to change or temporary suspension depending on market conditions,
a move intended to maintain the group’s flexibility and ensure global market stability.

Participating countries also reaffirmed their full commitment to the Declaration of Cooperation
and to making additional production adjustments,
stressing their intent to compensate for excess volumes produced since January 2024.
Monthly meetings will continue to evaluate market dynamics, with the next scheduled for June 1,
to decide July production levels.

On the other hand, oil prices sharply dropped on Monday following the OPEC+
announcement of accelerating production hikes, which sparked fears of an oversupplied market.
Ongoing geopolitical tensions in the Middle East further weighed on prices.

Oil Prices Fall to Lowest Levels Since April

Oil Prices Fall to Lowest Levels Since April

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