Oil Prices Puzzle Experts: 3% Surge Despite Opec+ Production Increase

Oil Prices Rise Despite Increased Production: Expert Analysis Dubai, UAE – June 2, 2025 – Oil prices have defied expectations, rising by 3% despite the Organization of the Petroleum Exporting Countries and allies (Opec+) increasing daily production by over 411,000 barrels for the third consecutive month. This unexpected surge has left market analysts puzzled, prompting The National’s Manus Cranny to offer an explanation. Cranny points to several key factors. He highlights the ongoing tensions between the US and China, suggesting that the trade disputes are creating uncertainty and driving up demand for safe-haven assets like oil. Furthermore, he notes internal divisions within Opec+, with some member states favoring a production freeze while others push for increased output. This internal conflict adds to the market's volatility. "Russia, Oman and Algeria all wanted to stand still," Cranny explains, "while the dominance of [Saudi Energy Minister] Prince Abdulaziz bin Salman was very, very clear. We're going to pump, we're going to add back, and they're going to go for market share." Adding to the complexity is the weakening US dollar. Cranny observes that the dollar has fallen by over 1.25% in the past 10 days, making oil, priced in dollars, more affordable for buyers using other currencies. This has created a floor under commodity prices, further contributing to the upward pressure on oil. The situation underscores the interconnectedness of global economics and politics. The unpredictable interplay of trade wars, internal Opec+ dynamics, and currency fluctuations continues to shape the global energy market, creating both challenges and opportunities for producers and consumers alike.