OPEC countries announced this Saturday wanting to get out of the ground 411,000 barrels per day in May, against 137,000 initially planned.
Eight OPEC+ member countries announced this Saturday a sharp increase in oil production for the month of June, accelerating the rhythm of reopening of valves at the risk of plumming already very low lessons. This should result in new price reductions at the pump.
Saudi Arabia, alongside Russia and six other cartel members, will get out of the ground 411,000 barrels per day, as in May, according to a press release, while the initial reintroduction plan provided for an increase of only 137,000 barrels.
“OPEC+ has just launched a bomb on the oil market,” said Rystad Energy for AFP Jorge Leon. “After the signal of last month, today’s decision sends a clear message: the group changes its strategy and seeks to regain market share after years of cuts,” he continues.
Treat relations with Donald Trump
A turnaround that also allows “weaving good relations with the United States of Donald Trump”, according to the analyst. Shortly after taking office, the American president had asked Saudi Arabia to produce more to lower the prices of black gold.
The members of the Organization of Petroleum Exporting countries (OPEC), led by Ryad, and their allies led by Moscow, in 2016 formed an agreement called OPEC+ to better weigh on the market. These 22 countries, mostly very dependent on the oil windfall, played until recently on the scarcity of the offer to boost prices, keeping in reserve millions of barrels.
With a more marked effort on the part of eight members, who have made additional discounts: in addition to Saudi Arabia and Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman are concerned. After repeating the reintroduction of these volumes several times, they started the process in early April and now press the accelerator.
