OPEC+ agreed to increase production again in June, where the group leaders continue to revive the width speed aimed at punishing the excessive production who sent crude prices.
The main countries led by the Kingdom of Saudi Arabia and Russia have agreed to add 411,000 barrels next day, according to a statement on the OPEC website after a video conference on Saturday. The height reflects a similar increase announced last month, when the group made the shock decision to returnThree times the planned sizeFor the month of May.
Raw merchantsIt was already preparing for a significant increase after the Kingdom of Saudi Arabia indicated in recent weeks that it was ready to accept a long period of low oil prices. But it depends on a dramatic reflection in the recent months of the Cartel Long website of defending oil prices, which raises questions about the future of the coalition and exceeded speculation about price war.
While the statement referred to the “basics of the current health market”, the OPEC+ delegates attributed the strategic shift to the Saudi frustration of excessive production by members such as Kazakhstan and Iraq, and they chose to discipline them through the “financial sweating” of prices.
“OPEC+ has just thrown a bomb on the oil market.” “With this step, the Kingdom of Saudi Arabia seeks to punish the lack of compliance, especially from Kazakhstan, but it is also launched with President Trump’s push for low oil prices.”
Read:Understanding Saudi payment to reduce oil prices: Javier Plus
RIYAAN seeks to strengthen relations with US President Donald Trump, who will visit the Middle East this month and called on the organization of oil -exporting countries to reduce fuel costs. Trump is also making false talks on a nuclear agreement with his political enemy and his colleague in OPEC,Iran.
Oil prices were traded near $ 61 a barrel in London on Friday, at nearly four years of lowest level, as the Saudi axis added to the concerns of Trump’s tariff against China-the world’s largest oil importer-and other major economies. Even before OPEC+ begins to increase production, the oil markets faced the surplus of 2025 due toSatisfy the Chinese requestAnd the abundant American offer.
Prices in prices threaten oil companies, including American rock producers, who have warned that they will not be able to obey Trump’s call to “drilling, child, drilling” towards a new era of American energy dominance. It also shows the pain of OPEC+ members, including the Saudis themselves.
The Kingdom has already been forced to reduce investment in projects at the heart of the plans of Crown Prince Mohammed bin Salman for economic transformation, such as the future city, NEOM. The level of expectations for the Middle East countries was reduced last week by the International Monetary Fund, which RIYADH needs oil prices above $ 90 to cover government spending.
So far, “sweating” seems to have achieved great success in reforming the usual coalition producers.
While Iraq is making some efforts to determine its goals, the same is not possible to say for Kazakhstan, the most stringent classes in the group and the main focus of the temptation of his leadership.
Kazakhstan has a limited field to curb international oil companies such as Chevron Company and Eini A spa working on projects to expand production capacity, and people familiar with this issue previously said that the country did not ask them to limit the operations. ASTANA exceeded its OPEC+ goal by 422,000 huge barrels per day in March, and group data.
CEFron Mike CEO and inherits in a phone call on Friday that he had not discussed a possible reduction in the company Tengiz Development in Kazakhstan when he met the country’s leaders recently.
The transformation by OPEC+ is towards opening the taps a sharp exit for the Saudi Energy Minister Prince Abdulaziz bin Salman, who often urged the group to be careful within a five -year period. It is a strategy that is very similar to the short war it waged against Russia OPEC+ leader in 2020.
Moscow’s position on the Saudi axis is still unclear. President Vladimir Putin still needs oil revenues to finance his three -year brutal war against neighboring Ukraine, but his warmer relations with Trump may advance the possibility of the sanctions that have prepared Russian oil trade.
OPEC+ eight members participating in the restrictions have stopped in the process of recovering production since 2022. They will meet on June 1 to determine production levels in July, according to the statement.
This story was originally shown on Fortune.com
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