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Sources say that OPEC+ is set to increase oil production again in June.

Four sources familiar with the matter said that eight OPEC+ nations will likely agree on Saturday to a further accelerated increase in oil production for June. This is the latest step of a plan designed to undo the most recent layer of cuts made by the group.

The eight countries increased their output by 411,000 barrels a day in May. This decision, along with the U.S. tariffs on trade, helped drive oil prices to a 4-year low below $60 per barrel.

After moving the meeting from Monday to today, the countries will hold an online discussion to decide on June's output at 1000 GMT. Four sources told Reuters that a similar hike to the one approved in May is likely to be approved by the four countries for June.

Oil prices dropped over 1% Friday, as traders prepared for more OPEC+ supplies. Concerns about an economic slowdown due to a trade conflict between the U.S.

Brent crude futures closed Friday at $61.29, down 84 cents or 1.4%.

This week, it was reported that Saudi Arabian officials, de facto leaders of OPEC+ and allies, had informed industry officials and other officials that they were unwilling to support oil markets by cutting further supplies.

Sources have reported that Riyadh is angry because Kazakhstan and Iraq are producing more than their OPEC+ target.

Helima Croft, an analyst at RBC Capital Markets, also said that she didn't think a decision had been finalized but "discussions seem to be leaning towards another three-month hike".

Croft added, "Compliance appears to be a key focus. Kazakhstan, Iraq, and Russia continue to miss their targets for compensation.

OPEC+ (which includes the Organization of the Petroleum Exporting Countries, as well as allies like Russia) is reducing output by more than 5 million bpd. Many of these cuts will remain in effect until the end of the year 2026.

The group intends to hold a full-ministerial meeting on the 28th of May. (Reporting and editing by Barbara Lewis, Maha El-Dahan, and Ahmad Ghaddar)

(source: Reuters)