Oil prices fell sharply on Monday, May 5, 2025, after eight oil-producing countries under the Organisation of the Petroleum Exporting Countries + group announced they would raise production levels in June.
The move has raised concerns about a possible oversupply of crude in the global market.
According to Channels Television, the price of West Texas Intermediate (WTI) dropped by 3.8% to \$56.08 per barrel, while Brent Crude fell by 3.5% to \$59.17. The OPEC basket price also dropped slightly from \$68.74 on Friday to \$68.16 on Monday.
In a joint statement, Saudi Arabia, Russia, and six other members of the OPEC+ alliance said they would increase oil production by 411,000 barrels per day in June. This is a significant rise compared to May’s output increase of 137,000 barrels per day.
The countries involved include Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman. They met virtually to review current oil market conditions and agreed that global supply was too tight.
They said in the statement, “In view of the current healthy market fundamentals, as reflected in the low oil inventories… the eight participating countries will implement a production adjustment of 411,000 barrels per day in June 2025.”
This change is part of a plan to gradually return to normal production levels, after voluntary cuts of 2.2 million barrels per day were made in previous months to support prices.
The group also mentioned that the planned increases could be paused or reversed depending on how the market reacts.
“This flexibility will allow the group to continue to support oil market stability,” the statement added.
They also promised to make up for any excess production since January 2024 and said they are fully committed to their earlier agreements on oil output limits.
The Joint Market Monitoring Committee (JMMC), which oversees OPEC+ decisions, will continue to monitor the situation.
The eight OPEC+ countries are expected to meet again on June 1, 2025, to decide on production levels for July.
