OPEC+ considers further oil production increase in July, fuel prices may drop

Members of the OPEC+ oil cartel are discussing whether to significantly increase oil production again next month. This would mark the third consecutive month of higher-than-planned production hikes, potentially leading to further declines in oil prices. For motorists, this could mean cheaper fuel.

One option under consideration is a production increase of 411,000 barrels per day in July, three times the originally planned amount, according to insiders. The cartel, led by Saudi Arabia and Russia, had already announced similar production increases for May and June.

The shift in OPEC+ policy marks a notable departure from its traditional stance of preventing price drops. Oil prices fell sharply on Thursday morning, with U.S. crude dropping 1.6% to $60.61 per barrel, while Brent crude declined 1.5% to $63.91.

In the Netherlands, the recommended price for a liter of Euro 95 (E10) is now €2.10, according to consumer collective UnitedConsumers, which tracks fuel prices daily. This is 5% lower than a year ago. Diesel prices fell 4% to €1.80 during the same period.

Without government intervention, fuel prices are set to rise sharply next year. A tax discount on fuel will expire on January 1, increasing the price of a liter of gasoline by 25 cents. Infrastructure Minister Barry Madlener has called on parliament to take action, urging a solution by Budget Day in September. Preventing the tax hike is estimated to cost €1.6 billion.