OPEC+ Speeds Up Return Of Next Tier Of Halted Oil Production

OPEC+ Speeds Up Return Of Next Tier Of Halted Oil Production


OPEC+ agreed to a new round of production increases from next month, as the group extends a policy shift toward higher volumes after years of defending prices.

In a meeting that lasted 11 minutes, key alliance members approved adding about 137,000 barrels a day from October during a video call on Sunday as they accelerates the unwinding of its next tier of supply cuts. The group said in a statement it will return all or part of 1.65 million a day, without giving a period or increments, depending on market conditions. Delegates said it will be added in monthly stages until September next year.

The Organization of the Petroleum Exporting Countries and its partners stunned oil markets in recent months by reviving 2.2 million barrels of halted production a year ahead of schedule in a bid to reclaim market share, even despite widespread expectations of an approaching supply glut. That restoration has only just been completed.

Crude prices have fallen 12% this year, pressured by increased output from OPEC+ countries and elsewhere, and as US President Donald Trump’s trade war weighs on demand. Yet the market has overall proven surprisingly resilient to the alliance’s strategy shift, giving Saudi Arabia and its allies added confidence to return even more barrels. 

The group hopes that a further increase in sales volumes will offset any hit to revenues from lower prices, one delegate said, signaling a reversal of the strategy that OPEC+ has espoused since its creation almost a decade ago. 

Read More: Saudi Arabia Wants OPEC+ to Speed Up Next Oil Supply Boost

Further production increases are likely to please Trump, who has repeatedly called for lower oil prices to help tame inflation and as he pressures Russia to end its war against Ukraine. Saudi Arabia’s Crown Prince Mohammed bin Salman is scheduled to visit Washington in November to meet the US president.



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