Crude oil (OIL) is gaining nearly 4% today, as the increase in supply from OPEC+ turned out to be lower than the market had feared, despite heightened geopolitical risks surrounding Ukraine and Iran.
- On Saturday, OPEC+ agreed to increase output by 411,000 barrels per day in July, contradicting late-week reports that suggested a significant production boost was expected—news that had put downward pressure on oil prices on Friday, May 30. The decision aligns with the existing production plans for May and June and also matches Bloomberg analysts’ expectations.
- Meanwhile, a large-scale Ukrainian drone strike on Russian territory reportedly damaged around 40 aircraft, including strategic bombers stationed at even the most remote airfields. Markets are now concerned that Moscow may view this as a reason to escalate hostilities and retaliate more forcefully against Kyiv—something that has already been observed. This development may further delay any potential ceasefire negotiations. Today, Ukrainian and Russian delegations met in Istanbul.
- Additionally, the IAEA has warned that Iran's enriched uranium stockpile is nearing the threshold needed to produce a nuclear weapon. Washington still hasn’t reached a breakthrough in negotiations with Tehran, which continues to resist terms related to the so-called nuclear deal.
According to market reports, Algeria, Oman, and Russia oppose the OPEC+ production cuts initiated by Saudi Arabia, Kazakhstan, and Iraq. The next OPEC+ meeting is scheduled for July 6.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appOIL (Daily interval)
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
