OPEC+ Strategy: Retaking Market Share from U.S. Shale
OPEC+ aims to increase oil output, challenging U.S. shale producers to regain market share. The strategy, spearheaded by Saudi Arabia and Russia, seeks to drive oil prices below $60, pressuring U.S. producers struggling with rising costs. OPEC+ members view this move as a necessary tactic to reclaim influence in the global oil market.
OPEC+, led by Saudi Arabia and Russia, plans to boost oil production in a bid to regain market share from U.S. shale producers. This strategy follows a previous failed attempt a decade ago, as innovative U.S. drilling techniques had significantly slashed costs and maintained competitiveness.
Recent economic shifts, largely impacted by U.S. tariff policies, have made American shale producers more vulnerable to a price war. OPEC+ sources suggest that lowering oil prices below $60 per barrel could unsettle U.S. production plans, allowing the coalition to reclaim lost ground.
Despite the lack of formal acknowledgement of a price war, insiders believe the output increase is a strategic move to challenge over-producing allies and the U.S. market. With the shale industry facing higher costs and depleted top-quality reserves, OPEC+ sees an opportunity to reassert its influence.
(With inputs from agencies.)
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