The Organization of the Petroleum Exporting Countries (OPEC+) has agreed to another significant increase in oil production in September, completing the restoration of a halted tranche of supplies as the group seeks to regain global market share. write Bloomberg.
Saudi Arabia and its partners plan to ratify an additional 548 barrels per day next month. The increase would complete the rollback of a 2,2 million barrel cut by the eight members in 2023. It also includes an additional quota that the United Arab Emirates is gradually implementing.
The latest hike completes a sharp shift by the Organization of the Petroleum Exporting Countries and its partners from protecting prices to opening the taps.
Their turnaround cushioned oil and gasoline futures from geopolitical tensions and strong seasonal demand, offering some relief for drivers and a victory for President Donald Trump, but could add to a global supply surplus expected later this year.
Analysts warn that the market will face a growing surplus later this year as increased supplies and slowing global growth weigh on demand.
Retail gasoline prices in the US even fell slightly last month, a move that came amid Trump's threats to impose secondary tariffs on Russian oil exports unless there is a quick ceasefire in the war in Ukraine.
