London/Moscow (Reuters) – Eight OPEC+ member countries decided on Saturday to increase their production by 411,000 barrels per day in July, the same volume as in May and June, as a continuation of their recent policy of increasing supply on the world market.
These eight countries of the organization (Algeria, Saudi Arabia, United Arab Emirates, Iraq, Kazakhstan, Kuwait, Oman, Russia) have been raising their production since April, even if this additional offer is pricing down.
Saudi Arabia and Russia, the two pillars of OPEC+, thus intend to dissuade certain member states to exceed their production quotas and regain market share, on American producers in particular.
“Today’s decision is only illustrating the fact that the market share is priority. If the price does not allow the expected income to be obtained, they hope that the volume will allow it,” commented Harry Tchilinguirian, from Onyx Capital Group.
The volume for July was set during a virtual meeting during which other options were debated. Sources close to the organization, it was declared on Friday that a greater increase could be discussed.
In a statement released at the end of the meeting, OPEC+ justified its decision by “stable global economic prospects and healthy market fundamentals, as illustrated by the low level of oil stocks”.
Taking into account the increase in July, OPEC+ will have increased in total its production by 1.37 million barrels per day since the first measures to increase the offer of the eight member countries in April, that is almost two -thirds of the 2.2 million BPJs which they intend to reintroduce on the market.
Two other production reductions decided in recent years – 2 million BPJ by all member countries, 1.65 million by the group of eight – must gradually end by the end of 2026.
The prices of oil fell in April at their lowest level for four years, at less than $ 60 a barrel, following the announcement by OPEC+ of a tripling of its production increase for the month of May and the price war triggered by Donald Trump, who has raised fears of a recession and a decline in global demand. Brut prices ended on Friday to just under 63 dollars per barrel.
(Alex Lawler, Ahmad Ghaddar, Olesya Astakhova, Maha El Dahan and Yousef Saba; Jean-Stéphane Brosse for the )
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