OPEC+ confirms 432k bpd output increase for June as output falters  

Quantum Commodity Intelligence - The OPEC+ producer group stuck to its planned crude oil output increase during its meeting on Thursday, announcing a widely expected 432,000 bpd increase in June production levels.

However, the announced increase was viewed as being largely for appearance's sake, as most of the group's members have struggled to meet existing quotas.

The latest Bloomberg survey on OPEC production found the group added just 10,000 bpd in April, compared with an allowed combined increase of 254,000 a day.

This was even lower than the Reuters survey, which revealed OPEC added 40,000 bpd in April after several production mishaps and a broader lack of investment.

"At this point, when nearly every producer is under their quotas, production targets are meaningless to the market. What matters is how much key producers plan to actually increase their production," said Ellen R. Wald, President of Transversal Consulting

Western leaders have previously called on Middle East producers with spare capacity to make up production shortfalls, but given the politics of OPEC+, which includes Russia as a key member, analysts see little chance of an overhaul of output quotas.

"Following the conclusion of the 28th OPEC and non-OPEC Ministerial Meeting, held via videoconference on 5th May, it was noted that continuing oil market fundamentals and the consensus on the outlook pointed to a balanced market," said OPEC in a statement after the meeting.

The meeting did not address the upcoming US Senate panel that will consider a bill to open OPEC+ members to lawsuits for collusion and inflating petroleum prices.

OPEC announced that the 29th OPEC and non-OPEC Ministerial Meeting would take place on 2 June.