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Eight members of the OPEC+, including Saudi and Russia Arabia, announced a second consecutive monthly increase of 411,000 barrels per day for June, even when oil prices continue in the slide because and economic waste.
The oil sign surprised the market last month by announcing a leap in the production of the same size, more than three times more than expected. The combination of the increase in the offer of the OPEC and the fears that the US trade tariffs. Uu. Vadpen the global economy saw raw Brent in almost a fifth from April 2 to $ 61 per barrel, minimum almost year.
The OPEC+ movement to pump more oil to a market that falls marks a significant approach, said Jorge León, a former OPEC employee now in the Rystad energy consulting.
“The OPEC+ has just launched a bomb to the oil market,” he said, adding: “Last month’s decision was a call for attention. Today’s decision is a definitive message that the group led by Saudi is changing the strategy and pursues the market share after years of reducing production.”
During the last three years, OPEC+ had reduced collective production by almost 6 mn B/d to reinforce prices, an initial strategy kept raw above $ 90 per barrel through more than 2022. But it is effective and ascending TPID TPID TPID TPID TPID Members.
The tensions within the poster have grown, particularly with Kazakhstan, who has expanded the production of his field directed by Chevron and indicated that he would prioritize the “national interests” over group quotas.
In response, Saudi Arabia has begun to relax production edges, pressing for this month’s increase.
The kingdom, which had reduced its own production by 2mn B/d in the last three years, has been frustrated more and more with the rise of most of the cut, while other members, including Kazakhstan and Iaraq.
Saudi officials now feel comfortable by bringing the offer back even if they lead to a prolonged period of lower prices, according to people familiar with the thought of the kingdom. It is not clear why Saudi, who is struggling to balance its national budget because oil prices have revolved to the new strategy, which probably leads to lower oil prices for the rest of this year.
Some analysts questioned how much oil would come to the market. Bjarne Schieldrop, main analyst at Basic Products of SEB, said that OPEC+ production in April fell in 20000 b/d due to Venezuelan sanctions, and said that planned increases could fall short if the rapists of previous quotas such as Kazakhstan, Iraq.
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