Its members OPEC+ discuss a third consecutive increase in production oil In July, which will be decided at the team’s meeting in just more than a week, according to a Bloomberg report.
An increase in production by 411,000 barrels a day for July – three times the amount of initially scheduled – is among the options discussed by OPEC members, although the final agreement has not yet been reached. The final decision is expected to be taken on June 1st.
The cartel has contributed to the sinking of crude prices since announcing increases of 411,000 barrels for May and June – corresponding to about 1% of OPEC+ current production – to a historical rupture with the multi -year defense of oil markets. Oil made a new dive on Thursday, dropping 0.9% to $ 64.31 a barrel at 9:13 am. in London.
While OPEC+ states that increases in supply are aimed at satisfying demand, officials have privately expressed a number of incentives, from the punishment of overproduction of members to the recovery of market share and the reflection of President Donald Trump.
Saudi Arabia, leader of the group, warned the stranded members, such as Kazakhstan and Iraq, at their last meeting that it could further increase their production if they do not comply with their quotas. Despite some promises of atonement, Kazakhstan has made little efforts to limit international oil companies operating in the country and continue to export quantities to record levels.
“Our appeal is for another increase in OPEC quota by 411,000 barrels a day in July, similar to May and June,” said Martijn Rats, Morgan Stanley’s global strategic oil analyst. “The compliance of overproduction countries has not changed much and so far previous increases in quota have been absorbed by the market.”