Oil production increases by OPEC+, set to commence in July
Ramped-Up Oil Production Planned by OPEC+ from July
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, will boost oil production this summer. According to a statement released after an online meeting, the combined daily output of eight key members, such as Saudi Arabia, Russia, Iraq, the United Arab Emirates (UAE), Kuwait, Kazakhstan, Algeria, and Oman, will rise by 411,000 barrels from July.
This decision coincides with a stable global economic outlook and healthy market fundamentals, including low oil inventories. OPEC+ has the power to influence supply and prices in the market due to its control of approximately 40% of global oil production.
In May and June, these same eight countries had already agreed to increase production by the same amount. In response, the oil price has seen a reduction in recent days.
Deeper Dive into OPEC+ Membership
OPEC is an association of oil-exporting nations, including African states like Nigeria or South American states like Venezuela, as well as Western states such as the USA, Canada, and Norway. However, these countries do not form part of the cartel.
OPEC+ Forecast and Expectations
Despite lowering its forecast for global economic growth, OPEC remains optimistic about oil demand. It predicts a 1.3 million barrels per day increase in demand this year and a 1.28 million barrels per day increase in demand next year, driven primarily by strong air travel demand and robust road mobility.
These expectations are more optimistic than those of other industry representatives, such as the International Energy Agency (IEA), which currently estimates this year's growth at 726,000 barrels per day.
Sources: ntv.de, chr/dpa
Related Topics: OPEC, Saudi Arabia, Russia, Commodity Oil, Oil Price.
The community policy within OPEC+ countries might need to consider the potential impacts of increased oil production on their economies. The employment policies of these countries, particularly those in the industry, finance, energy, and oil-and-gas sectors, could be affected by changes in oil prices due to OPEC+ production decisions.
