OPEC Plus increases oil production in July 411 thousand barrels per day economy

The OPEC Plus Group, which produced oil, agreed to continue production increases with a new share next July by 411 thousand barrels per day, in an effort to restore its share in the market and punish those who exceeded the prescribed production shares.

For years, the group has approved production discounts by exceeding 5 million barrels per day or 5% of global demand, but 8 member states decided to start raising their production with a modest increase from last April before approved the increase in the increase by about 3 such as last May and June, and today decided a new increase in July.

These countries increase production, although the surplus supply presses crude oil prices, while Saudi Arabia seeksRussia The two pioneers in the organization to restore their markets and punish their allies who are excessive in production Iraq Kazakhstan.

“The decision shows that the market share is at the top of the agenda. If the price does not achieve the required revenues, it (those countries) hopes that the volume of (production) will achieve,” said analyst Harry Chilings, of UNEX Capital Group.

Great increase

The eight countries agreed to increase production in July during a meeting held yesterday, Saturday, and a delegate in OPEC Plus stated that these countries also discussed other options. Sources familiar with the OPEC Plus talks reported on Friday that it could discuss a major increase.

In a statement issued after the meeting, OPEC Plus next July to “stable global economic expectations and solid basics of the market, which is reflected in the decrease in oil stocks.”

The OPEC Plus group pumps about half of the world’s oil, and includes members of the Petroleum Exporting Organization (OPEC) and allies of them Russia.

Analysts say that increasing the supply affects crude oil prices and weighs all producers, but pressure is greatly intensified on some of them, including American shale oil producers.

“3 strikes from OPEC Plus, none of them were easy. The warning was last May and then confirmed in June (June) was followed by a bullet (an increase in the same amount) in July (next July),” said Jorge Leon, head of the Geopolitical Analysis Department at Risad, a former OPEC official.

The eight OPEC Plus countries announced increases since last April, totaling 1.37 million barrels per day, or 62% of 2.2 million barrels per day, from the target of adding it to the market.

OPEC Plus officials, including Alexander Novak, said that the high demand for oil in the summer makes it better to increase production at this time.

Coherent market

“The oil market is still coherent, which indicates its ability to absorb additional barrels. It is expected that the actual increase will be less due to the excessive production of a number of eight countries and the high seasonal demand,” said the analyst at UPS, Giovanni Stonovo.

An informed source said that Algeria was among the few countries that requested a temporary pause in production increases today, Saturday.

Oil prices fell to its lowest level in four years last April, as it decreased to below $ 60 a barrel after OPEC Plus announced that it would raise the increase to 3 likes in May, and this coincided with concerns about the decline in growth globally due to Customs It was announced by the American President Donald Trump. Prices were below $ 63 on Friday.

A poll of analysts conducted by Reuters, published on Friday, expected the growth of global demand for crude at a rate of 775 thousand barrels per day during the current year compared to the expectations of the International Energy Agency earlier in the month that the average growth of oil demand for 740 thousand barrels per day in the same year.

In addition to the decision of the eight countries today, Sunday, a re -supply of about 2.2 million barrels per day gradually to the market continues to the path it started last April, OPEC Plus still has two other SIM cards until the end of 2026.