In a virtual meeting, OPEC+, the eight energy ministers from Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, agreed to a further increase in oil production in November, of 137,000 barrels per day.
The alliance, led by Saudi Arabia and Russia, decided on this increase in a videoconference, the eighth consecutive monthly increase, in view of the “stability of the global economic outlook and the current strong market fundamentals, reflected in low oil inventory levels.”
The Organization of the Petroleum Exporting Countries (OPEC) announced the production increase in an official statement, noting that with these increases, “OPEC+ seeks to reverse two voluntary cuts from 2023. One of 2.2 mb/d, assumed primarily by Saudi Arabia and Russia, and another of 1.65 mb/d, shared among the eight members of the group.” Once the 2.2 mb/d have been returned to the market, next month’s increase will be offset by the 1.65 mb/d cut.
Analysts point out that through these decisions, OPEC+ seeks to regain market share by assuming lower prices, rather than the policy of propping up prices through sharp production cuts.
M.Pino
Source: elnacional
(Reference image source: Raff Liu on Unsplash)
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