- OPEC+ Increases Oil Production: Despite low global oil prices, OPEC+ member countries, including Saudi Arabia and Russia, have announced a significant increase in oil production for June.
- Production Increase: The decision involves an additional production increase of 411,000 barrels per day, exceeding the initial plan of 137,000 barrels.
- Strategic Shift: This move is seen as a strategic shift by OPEC+, prioritizing market share over price support.
- US Relations: The decision may be an attempt to build good relations with the United States under Donald Trump’s presidency, who had called for increased production to lower prices.
- Potential Impact: The surge in supply could accelerate the decline in oil prices, potentially pushing them below $55 per barrel.
OPEC+ member countries, including Saudi Arabia and Russia, have announced a significant increase in oil production for June, despite low global oil prices. This move is seen as a strategic shift by OPEC+, prioritizing market share over price support. The decision involves an additional production increase of 411,000 barrels per day, exceeding the initial plan.
The move may be an attempt to build good relations with the United States under Donald Trump’s presidency, who had called for increased production to lower prices. Analyst Jorge Leon of Rystad Energy describes the decision as “a definitive message that the Saudi-led group is changing strategy and pursuing market share after years of cutting production.”
The surge in supply could accelerate the decline in oil prices, potentially pushing them below $55 per barrel. This decision comes amid a backdrop of US tariffs impacting the global economy and a slight downward revision of oil demand forecasts.
