The production increase in June follows a similar increase in production in May.
Prior to the video conference, a production increase of 400,000 barrels per day in June had been proposed - a figure that pushed down the oil price on the global market to its lowest levels since 2021. In the end, it was a bit more, according to the delegates who spoke to Bloomberg.
Price drop of 18 percent
A futures contract for the so-called Brent oil for delivery next month was trading at just over 61 dollars on Friday, which means a price drop of 18 percent since the turn of the year.
The increased production quotas in May and June come as oil countries such as Kazakhstan and Iraq have been producing significantly more oil than their quotas permit - which has gotten oil giant Saudi Arabia upset.
"A grenade on the oil market"
Jorge Leon, an analyst at Rystad Energy A/S, describes Saturday's decision as "a grenade on the oil market".
With this decision, Saudi Arabia is trying to punish the lack of discipline, particularly from Kazakhstan's side, but also to integrate production policy with the pressure from US President Donald Trump to get the oil price down, he to Bloomberg.
The oil market was already characterized by an oversupply of oil prior to Saturday's decision, due to lower demand in China and increased oil production in the USA.
