Eight OPEC+ countries, including Saudi Arabia and Russia, have announced a significant increase in oil production for June, marking a sharp pivot from the group’s recent strategy of curbing output to support prices.
According to a statement released on Saturday, the bloc will implement a collective production adjustment of 411,000 barrels per day, repeating May’s output levels despite an earlier plan to raise output by only 137,000 barrels per day.
The move which involves Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman comes at a time when oil prices are already under pressure, raising concerns about a possible further decline.
The 22-member OPEC+ coalition which was created in 2016 to enhance the influence of oil-producing nations had previously relied on supply restrictions to stabilize prices and manage market volatility.
The sudden shift signals a return to a more aggressive approach aimed at regaining market share, potentially at the cost of lower global prices.
Analysts also suggest the move may serve geopolitical interests.
Leon noted that the decision could be seen as an effort to reset relations with the United States, especially with the possibility of Donald Trump returning to office.
Trump had previously urged Saudi Arabia to increase output to bring down fuel prices for American consumers.
Last month, OPEC+ revised down its global oil demand forecast, citing economic uncertainties and trade tensions, particularly from ongoing U.S. tariffs as contributing factors.
With millions of barrels still held in reserve and price-sensitive markets closely watching, the implications of this production surge could be far-reaching, affecting both energy markets and international diplomacy.
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