OPEC+ agreed to increase production again in June, as group leaders will continue to accelerate the offer, which aims to punish too producing members who have sent crude oil prices to fall.
The main countries led by Saudi Arabia and Russia agreed to 411,000 barrels a day next month, according to a statement on the OPEC website after Saturday's video conference. The hike reflects a similar growth in the last month when the group made the shock decision to bring backTriple the proposed volumeMay.
Raw merchantsThe increase had already increased since Saudi Arabia signaled in recent weeks that he was willing to accept long -term low oil prices. However, in recent months, it is based on dramatic reversal in the long -term position of the cartel in protecting oil prices, raising questions about the future of the Alliance and increasing speculation about the price war.
Although the statement referred to the “current healthy market”, OPEC+ delegates have attributed the strategy to the shift of the strategy, such as overproduction of Kazakh and Iraqi members and has decided to discipline them through the financial “sweating” of their price drop.
“OPEC+ has just taken the bomb to the oil market,” said Jorge Leon, an analyst at Rystad Energy A/S, who previously worked for the OPEC Secretariat. “With this move, Saudi Arabia wants to punish a lack of compliance, especially from Kazakhstan, but also with President Trump's lower oil prices.”
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Riyadh wants to strengthen connections with US President Donald Trump, who will visit this month in the Middle East and have invited oil export countries to reduce fuel costs. Trump also holds fluctuating talks in the nuclear pact with Riyadh's political enemy and fellow member, OPEC memberIranTo.
Oil prices traded in London near a $ 61 barrel in London, near the four-year-old lowest level, as Saudi Piivo added to fears Trump's tariff after China's largest oil planter and other major economies. Even before OPEC+ began to increase production, the oil markets faced the surplus of 2025China's demand for slowing downAnd a rich American offer.
The dive of prices threatens petroleum companies, including US shale producers who have warned that they are unable to follow Trump's call for “drill, baby, drill” for a new era of American energy dominance. It also writes pain for OPEC+ members, including the Saudi themselves.
The kingdom is already forced to cut investment in crown prince Mohammed bin Salman's economic transformation plans, such as a futuristic city, Neom. The prospects of the Middle Nations were lowered last week by the International Monetary Fund, according to which Riyadh needs more than $ 90 to cover oil prices to cover government spending.
Until now, it seems that the reform of the Alliance's fraud producers has been successful in sweating.
Although Iraq is doing its goals, it cannot be said about Kazakhstan, which is the most blatant quota of the group and the main focus of Riyadhi Ire.
Kazakhstan has a limited extent of international oil companies such as Chevron Corp. And with the Ens Spa, as they work to expand the projects to expand the projects. People who are familiar with the matter have previously said that the state has not even asked them to restrict operations. Astana crossed her OPEC+ target 422,000 barrels a day in March, the group data shows.
Chevron CEO Mike Wirth said in a conference call on Friday that he did not recently discuss possible cuts in the development of Tengiz, Kazakhstan, at a recent meeting with the leaders of the country.
The OPEC+ replacement towards the opening of the taps is marked by the Saudi Minister of Energy Prince Abdulazizi bin Salman's abrupt departure, who has mostly invited the group to make caution during his five -year term. This is a strategy that resembles a short war, which he held against Russia in 2020.
Moscow's attitude towards the Saudi turn remains unclear. President Vladimir Putin still needs oil income to finance his brutal three -year war against Ukraine, but his warmer relationship with Trump can provide relief from sanctions that have stimulated Russia's oil trade.
Eight OPEC+ members involved in curb stones have stopped since 2022 during production recovery. They will meet on June 1 to decide on the production level of July, the statement will be revealed.
This story was originally reflected on Fortune.com
