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Crude oil prices rise after OPEC+ production increases in July below expectations
image 2 June، 2025
image ابحاث السوق
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Crude oil prices rose more than 2% at the start of trading in the European session today, Monday, June 2, the opening session of the week, after OPEC+ decided to increase production less than expected over the weekend. This supported crude oil markets, in addition to rising geopolitical tensions related to Ukraine and Iran. Brent crude rose by about 2.18%, trading at $64.15 per barrel, while US crude (NYMEX) traded at $62.35 per barrel, up about 2.57%. OPEC, the world’s largest oil exporter, and its non-OPEC allies led by Russia, known as OPEC+, decided on Saturday to increase production by 411,000 barrels per day in July for the third consecutive month, by the same amount. The group seeks to punish members that exceed their permitted production quotas, such as Kazakhstan and Iraq. Crude market reaction was positive, given that the reduction was less than market expectations, with more than half of the production increases being distributed among the three largest producers in the group, Saudi Arabia, Russia, and the United Arab Emirates. Morgan Stanley expects OPEC+ to raise production levels an additional three times, by 411,000 barrels per day, while a Morgan Stanley report indicated that it expects only one additional increase in August. Meanwhile, tensions between Russia and Ukraine have escalated after the latter launched an attack on military bases deep inside Russia, targeting 41 Russian aircraft, according to Ukrainian media. Meanwhile, the Iranian-American dispute and negotiations continue. A confidential report by the International Atomic Energy Agency (IAEA) revealed that Iran’s stockpile of enriched uranium has risen to levels close to weapons-grade, a development Tehran has criticized.

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