On Monday, June 2, 2025, Brent crude oil prices experienced a notable reaction, climbing 1.9% to $63.97 a barrel, after OPEC+ confirmed its commitment to a measured approach in increasing oil supply. The group will proceed with a production increase of 411,000 barrels per day in July 2025, adhering to the schedule announced previously. This decision has had a positive impact on energy stocks, with companies like Shell PLC and BP PLC seeing gains in their share values.
UBS analysts mentioned that this increase aligns with expectations, as the physical oil market demonstrates the capacity to absorb the additional supply. The eight OPEC+ countries will meet on July 6, 2025, to decide on August production levels.
While UBS forecasts Brent at $68 a barrel through mid-2026, they caution that seasonal demand adjustments may occur later in 2025. In afternoon trading, Shell's shares were up by 1.2%, and BP's shares increased by 1%, reflecting the overall positive sentiment in the energy market. The outlook remains generally favorable for oil producers and energy-related stocks.