Hey everyone, big news in the energy world! OPEC+ is ramping up oil production by 411,000 barrels per day in July. Countries like Saudi Arabia, Russia, Iraq, and the UAE are stepping up their game to reclaim market share. 🚀
This marks the third consecutive monthly production hike, adding up to a total increase of 1.37 million bpd since April. The plan, which began with unwinding 2.2 million bpd of voluntary cuts starting April 2025, comes on the back of a steady global economic outlook and low oil inventories.
Analysts, including Harry Tchilinguirian from Onyx Capital Group, pointed out that when prices aren’t yielding the revenue, boosting volume might be the winning strategy. However, there’s a flip side: this increase could further pressure oil prices, which recently slipped to four-year lows below $60 per barrel in April.
US shale producers, already facing rising drilling costs and needing about $65 per barrel to make a profit, might find the competition even tougher. It’s a classic case of market maneuvers where every move has a ripple effect globally. Stay tuned as we watch these trends evolve! ⚡️
Reference(s):
OPEC+ to hike oil production in July, prioritizing market share
cgtn.com
