Opec+ wants to go back to the top halfway through

Oil-producing cartel Opec+ appears to have a new mantra in time for summer. Just go with the flow. And now the oil pump is running.

On Sunday, leaders of the 22-country group met at a video conference to agree on the power levels for the coming August, with most industry observers hoping to continue the hiking power levels along the already significant increase in production seen this summer. Still, experts warn that the group will ultimately receive a crude awakening due to its new, free-flowing attitude.

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About 2 years later Reduce production to support lower prices (and They may even punish members This year, the oil cartel is facing a new challenge of reducing market share thanks to new supply from US shale producers. In fact, recent data released by the Energy Information Administration shows that US crude oil production reached an all-time record in April. OPEC+ responded by quickly agreeing to increase 411,00 barrels per day in May, June and July each. This is a much faster acceleration than we previously agreed to.

The evidence suggests that many countries pass even at their boundaries. De facto group leaders, Saudi Arabia, neighbors Kuwait and the United Arab Emirates, loaded 105 million barrels of crude oil into tankers last month. According to ship tracking data compiled by Bloombergmarking the highest rate since April 2023. Member Nation Kazakhstan, which built a reputation for over-pumping, coincided with the all-time highs of production in June. According to a source who spoke with Reuters.

Despite geopolitical conflicts rattle the region, a surge in supply has proven sufficient to tame prices.

• Brent’s oil prices were slashed slightly on Tuesday and Wednesday for some positive demand indicators. As recent data on Caixin It shows that China’s manufacturing activities looked back into the expanding realm in June. Still, Brent crude prices closed at $69 per barrel on Wednesday. Over $80 per barrel It was seen after the US launched an air attack in Iran last month.

• “OPEC’s voluntary producers believe that even the rapid sales of Iran’s mountaineering and subsequent ceasefire prices will take another accelerated three months of gradual phase.” I wrote it in a report I saw According to Bloomberg.