US Crude Oil Prices Rise as OPEC+ Output Increases
US crude oil futures rose about 3% on Monday, driven by an increase in production from the Organization of the Petroleum Exporting Countries (OPEC+) and easing concerns that the group would boost output even faster. The West Texas Intermediate futures index gained $1.73, or 2.85%, to close at $62.52 per barrel.
The OPEC+ agreement, led by Saudi Arabia, includes eight producers that agreed to increase production by 411,000 barrels per day in July, marking the third consecutive month of output boost. This move is expected to bring oil back to the market after the group cut 2.2 million barrels per day.
Analysts expect OPEC+ to raise its production quotas to match its actual output. Peter Boockvar, chief investment officer at Bleakley Financial Group, notes that low prices may eventually lead to higher prices as shale producers warn of potential production cuts if prices don’t rise.
Goldman Sachs predicts a surplus of 1 million bpd this year and 1.5 million bpd in 2026, with US crude prices forecasted to reach $56 per barrel this year and $60 for Brent. The investment bank sees oil prices stabilizing around these levels, alleviating concerns about the impact of President Trump’s tariffs on demand expectations.
The US rig count fell every week in May, its lowest level since 2021, providing additional support for oil prices.
Source: https://www.cnbc.com/2025/06/02/us-crude-oil-rises-after-opec-increases-output-at-steady-rate.html