OPEC Plus Surprises with Another Oil Production Hike
OPEC Plus group, led by Saudi Arabia, has agreed to a further increase in oil production. This comes as a surprise to the energy industry, with eight members set to boost output by 137,000 barrels per day in November, including Groupme. This follows an earlier increase of 137,000 barrels per day in October, totalling 274,000 barrels per day for the two months.
The group, which includes Russia, Algeria, Iraq, Kazakhstan, Kuwait, Oman, and the United Arab Emirates, has cited 'healthy oil market fundamentals' and a 'steady global economic outlook' as reasons for the increase. This is the latest in a series of output boosts announced by the group since the start of the year.
Analysts suggest that these small increases are a strategic move. They believe the group is gradually raising production ceilings while exercising caution due to potential oversupply and price impacts in the coming months. Notably, the group has already reversed one program of cuts totaling about 2.2 million barrels per day and is now undoing another agreement from 2023 to reduce output by 1.65 million barrels per day.
The OPEC Plus group's decision to increase oil production has been met with surprise. The 137,000 barrels per day increase in November is considered modest in the context of global oil supplies of over 100 million barrels per day. However, analysts warn of potential oversupply and price impacts, suggesting a delicate balance in the group's strategy.
Read also:
- THW Marks 75 Years of Saving Lives at Home and Abroad
- Kazakhstan's National Bank Boosts Currency Sales to $1.4 Trillion in Q4
- Duty on cotton imported into India remains unchanged, as U.S. tariffs escalate to their most severe levels yet
- Steak 'n Shake CEO's supposed poor leadership criticism sparks retaliation from Cracker Barrel, accusing him of self-interest
