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First Look - Oil slips as OPEC+ increases output for June, Saudi signals further supply

OPEC+ approves June output hike
- OPEC+ agreed to raise production by 411 MBbl/d in June, following a similar increase in May
- The move is widely interpreted as a warning to overproducing members, particularly Kazakhstan and Iraq
  - Kazakhstan exceeded its March target by 422 MBbl/d, according to OPEC data
- WTI prompt-month fell $1.24 to $57.05/Bbl early Monday (7:30 AM CT)
Saudi Aramco raises crude prices for Asia
- Aramco increased its official selling prices for all grades, including Arab Light, by 20c/Bbl for Asian buyers in June, according to Bloomberg
- The price hike comes despite OPEC+ announcing a larger-than-expected supply boost
Saudi Arabia warns of additional supply
- Delegates say Saudi Arabia has warned that it may further accelerate production increases unless OPEC+ members comply with output targets

Natural gas prices are up about 3c, extending last week’s gains
- Prompt prices are trading at $3.66/MMbtu following last week's substantial rally
- Speculators increased their net short position in Henry Hub futures according to data released by the CFTC on Friday through the prior Tuesday
  - Speculators have continued to remove length and add short positions over the past few weeks, as prices have declined
Antero says higher demand in Appalachia needed to justify more production (S&P)
- Antero Resources said that before pursuing production growth in the region, they would need to see meaningful demand growth in the region
- The company said that a pathway to higher growth does look possible, given data center development
- Northeast production has averaged about 36 Bcf/d this year, and is often constrained by limited pipeline capacity