BS EDIT: Opec's output boost aims to enforce order—but at what price?

By Business StandardPublished On May 6, 2025

Opec+ Raises Output Again

Opec+ will add 400,000 barrels/day in June—its second monthly hike, bringing Q2 increases near 1 million barrels/day

Oil Prices Head Lower

Brent crude fell to $61/barrel and may dip further. Markets question if this signals a shift in Opec’s price strategy

Saudi Arabia Tightens Control

Riyadh warned overproducing members like Iraq and Kazakhstan to comply—or face price penalties through more output

Enforcing Compliance

Quota violations are common in Opec. Saudi leverage comes from spare capacity, used to discipline non-compliant members

Temporary or Tactical?

Analysts say lower prices may be short-term. Once others comply, Riyadh could return to targeting $100/barrel

Impact on India

Cheaper oil helps India cut its current account deficit and inflation—if price benefits reach consumers