According to a Reuters report, the eight OPEC+ countries with voluntary production cuts could also increase oil production more significantly in June, Commerzbank's commodity analyst Carsten Fritsch notes.
OPEC+ eyes further output hike in June
"A similarly strong increase in production as in May is being considered, according to informed sources. A decision on the production volume in June will be taken at a meeting at the beginning of the week after next. Even though these are as yet unconfirmed rumours, the cracks within the production cartel are apparently getting larger."
"A few hours earlier, Reuters reported that Kazakhstan wants to prioritise its national interests over the interests of OPEC+ when deciding on oil production. The new Kazakh energy minister justified this by saying that the western oil companies operating in the country could not be forced to cut production."
"The three projects operated by these companies - Tengiz, Kashagan and Karachaganak - account for 70% of the country's total oil production. Shutting down production in the other older oil fields would be impossible because they would no longer be able to produce at all."
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