Opec+ is led by Saudi Arabia, despite the low oil prices

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Eight OPEC+ members, including the Kingdom of Saudi Arabia and Russia, Declare A second consecutive monthly increase of 411,000 barrels per day for June, even as oil prices continue to slip due to concerns about excessive dependence and economic weakness.

Cartel oil surprised the market last month by announcing a jump in production of the same size, more than three times what was expected. A mixture of increased OPEC supplies and fears that US trade definitions will reduce the global economy in Brent has a decline by about five since April 2 to $ 61 a barrel, near the lowest level of four years.

George Lyon, a former OPEC employee now at Rystad, said that the transfer by OPEC+ to pump more oil to the falling market, is a major change in the approach.

He said: “OPEC+ I just delivered a bomb in the oil market,” adding: “Last month’s decision was an invitation to wake up. Today’s decision is a final message that the Saudi -led group changes the strategy and follows its share in the market after years of production reduction.”

Over the past three years, OPEC+ has reduced mass production by 6 ml -d/d to support prices, a strategy that initially kept raw over $ 90 a barrel during most of 2022. But its effectiveness diminished amid lukewarm demand, high American product, and the discipline of the portfolio between the members.

Tensions have grown inside the cartel, especially with Kazakhstan, which expanded production from the Chevron -led Tengiz field and indicated that it would give priority “national interests” on the group’s shares.

In response, Saudi Arabia has it It started to relax production restrictionsPay to increase this month.

The kingdom, which has reduced its production by 2 million barrels/D over the past three years, has become increasingly frustrated by stimulating the bulk of the discounts, while other members, including Kazakhstan and Iraq, have been constantly pumped over their share.

Saudi officials are now comfortable to re -offer even if it leads to a long period of low prices, according to people familiar with the Kingdom’s thinking. It is not clear why the Saudi, who is struggling The balance of its national budget due to low oil pricesAxis on the new strategy, which is likely to lead to low oil prices for the rest of this year.

Some analysts asked about the amount of oil that will already reach the market. BJARNE Schieldrop, Senior SEB, pointed out that the production of OPEC+ in April decreased by 200,000 barrel/d due to Venezuelan sanctions, and said that the planned increases may decrease if it was violators of previous shares such as Kazakhstan, Iraq and the United States of America in production.