The OPEC+ cartel is increasing oil production, despite disagreements between Saudi Arabia and Russia

The OPEC+ ministers, representing around thirty of the largest oil-producing countries, agreed at a meeting on May 31 to increase oil production by 411,000 barrels per day from June. This is a continuation of a similar increase in supplies that already occurred in May and is planned for the next month. Thus, for three months, the cartel will add 1.2 million new daily deliveries to the market.

However, at the OPEC+ meeting, a disagreement arose between two key participants in the organization - Saudi Arabia and Russia. According to Bloomberg sources, the Russian delegation opposed the increase in production, which could further lower oil prices and create problems for the Kremlin's budget. Nevertheless, the Saudis insisted on the decision, as they want to fulfill the request of the Donald Trump administration, which publicly insisted on lower oil prices.

Analysts believe that the OPEC+ decision could lead to a drop in the price of Brent to $50-60 per barrel, and the Russian Urals grade to become cheaper to the range of $40-50. This means that the global oil market may face a new "price war," warns ING analyst Warren Patterson.