OPEC+'s Strategic Output Hike: Balancing Demand and Market Share

In a critical move to address growing global demand, OPEC+ is poised to announce another oil output hike this July, following last month's increase. Three delegates have indicated that the group will focus efforts on expanding market share and aligning supply with the resurging demand. This strategy surfaces ahead of a key meeting scheduled for Wednesday.

The anticipated decision marks a continuation of a calculated approach since 2022 when OPEC+ instituted a series of production cuts to stabilize the energy market. Eight members have been incrementally releasing more oil, upping their production by 411,000 barrels per day through May and June, a trend likely to continue into July.

With oil prices recovering from a slump and currently hovering around $65 per barrel, the energy ministers, under UAE leadership, are keen to balance the market's dynamics. The July talks are expected to further define the pace and scale of production adjustments, especially after the recent recovery from economic tensions prompted by U.S. trade policies.

(With inputs from agencies.)