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Tanker wearing crude oil in Port Kingdao in Shandong Province, China, 3. August, 2025. (photo: Costfoto)
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The hike of fresh oil OPEC + sent another clear signal to the international crude market that its focus remains firmly at a higher market share.
In their meeting on Sunday, eight members of the Oil Manufacturers and Organization of Oil Organization, decided to raise their collective production for October for another 137,000 barrels per day.
The latest mountaineers signify 1.66 million BPD OPEC + barrels. It’s part of the group attempt to unwind Agreed cuts between April and November 2023 years.
Before the OPEC + had two declared MOTHS – 1.65 million BPDs, which cut eight members, and further 2 million BPD cut the entire group in place until the fourth quarter of 2026. Years.
Last month, OPEC + agreed to increase oil production for 547,000 BPD for September. This is more than a higher than the expected increase in 548,000 BPD for August and 411,000 BPD in May, June and July, because it still progresses with the placing multi-barrel on the market.
In a statement issued by Saudi Arabia, Russian Federation, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman cited “Current Healthy Market Fundamentals” as a reason for the latest campaign.
“Given the constant global economic look and current basis of a healthy market, eight countries participating decided to apply production of 137,000 barrels per day of 1.65 million BPD additional voluntary adjustments announced in April 2023. Years” The statement said.
This adjustment will be conducted in October. Many in the market predicted that the OPEC + may want to see the search information after the reconctions of the American summer season before the next move is at its last meeting.
Surprise OPEC + Move in the face of insecurity
However, the Group with IT firmly knows the acquisition of market share provided another surprise over another production hiking. Regardless, it must be noted that the OPEC + quota increases – to include additional barrels – continued to effectively increase efficient production by its members.
As the International Energy Agency noted: “The decision of the Group to rest the next layer of reduction for months dominated by oil markets forecasts of prefabricated supply surplus, and still markets remain relatively firm in the morning.”
This can all be entered in the fourth quarter of the fourth quarter of the year as producers in the game offer for a higher market share in the face, or at best uncertain, oil demand.
According to energy information – the statistical arm of the US Ministry of Energy – in April, the rough production of the nation entered an Superior high than 13.47 million BPDsInterruption of the previous record of 13.45 million BPDs in October 2024. years.
Ranks manufacturers who are not an OPEC also reinforce higher exit from Brazil, Canada, Guyana and Norway. Collective, non-brick production growth is likely to increase by 1.4 million BPD, According to Yea.
Regardless of any additional OPEC + barrels, such a high level of exit growth, which is more than enough than enough to set global demand for this year expressed by various forecasters.
They range from 0.68 million BPD to 1.3 million BPDs, with IEA and OPEC on opposite ends of this range.
In addition to additional barrels, which flow from all corners, there are fears that the oil market can end with excess of 500,000 BPD, if not more. As it becomes quite obvious that the OPEC + now wants to fight against manufacturers who are not an OPEC in offer for market share, oil prices can probably lower the head lower.
Declaration of responsibility: The above comment should encourage discussion based on the authors and analyzes that are offered in personal capacity. It is not a collection, recommendation or investment advice to trade or natural gases, future, options or products. Oil and natural gas markets can be very volatile and opinions in the sector can be changed at the current and without notice.
