Eight OPEC+ member countries announced this Saturday a strong increase in oil production for the month of June, accelerating the pace of the reopening of the valves at the risk of falling into very low lessons. This should lead to new price reductions in the pump.
Saudi Arabia, together with Russia and six other members of the poster, will leave the ground 411,000 barrels per day, as in May, according to a press release, while the initial reintroduction plan provided an increase of only 137,000 barrels.
“Opep+ has just launched a bomb in the oil market,” Rystad Energy said for the AFP Jorge Leon. “After the signal last month, today’s decision sends a clear message: the group changes its strategy and seeks to recover the market share after years of cuts,” he continues.
Treat relationships with Donald Trump
A change that also allows “to weave good relations with the United States of Donald Trump,” according to the analyst. Shortly after taking office, the US president had asked Saudi Arabia to produce more to reduce black gold prices.
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 OPEP+ to weigh better on the market. These 22 countries, mostly very dependent on the unexpected oil gain, played until recently in the shortage of the offer to increase prices, keeping millions of barrels in reserve.
With a more marked effort by 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 worried. After repeating the reintroduction of these volumes several times, they began the process in early April and now press the accelerator.
Source: BFM TV
