The price of crude oil experienced a dramatic surge on Monday morning, climbing over 4 percent despite OPEC+ confirming a planned increase in supply starting next month. This unexpected jump highlights the complex interplay of factors influencing the global oil market.

As of 8:55 a.m. ET on June 2nd, Brent crude futures were trading at $65.38 per barrel, a significant 4.14 percent increase. This rise comes even as OPEC+, the alliance of OPEC and other major producers including Russia, announced on May 31st a production increase of 411,000 barrels per day (bpd) commencing in July.

This latest increase is part of a larger plan to restore production levels. OPEC+ had previously implemented a reduction of 2.2 million bpd, a decision reversed in December 2024 with an agreement to gradually reintroduce this supply. The July boost represents a continuation of this phased approach, which began in May.

Market analysts point to several contributing factors behind the price surge despite the planned increase. These include dwindling U.S. crude oil inventories and ongoing geopolitical uncertainty stemming from the Russia-Ukraine conflict. These factors appear to be outweighing the anticipated increase in supply, creating a volatile and upward-trending market.