OPEC+ Production Boosts Fail to Satisfy Oil Thirst
OPEC+ has increased oil production significantly, yet inventories remain low, indicating strong market demand. Recent production hikes are part of efforts to regain market share and satisfy U.S. requests for moderation in gasoline prices. Despite the increases, the oil market remains tight, signaling a robust global demand.
Despite significant production increases by OPEC+, global oil inventories remain tight, as the market continues to reveal strong demand for oil. OPEC+, consisting of the Organisation of the Petroleum Exporting Countries and allies like Russia, has made concerted efforts to augment production after years of curtailments.
This year, the group reversed its course to regain market share and comply with requests from the U.S. administration to ease gasoline prices. Production has been ramping up since April, with notable monthly hikes, and further increases are anticipated in the coming months, according to insider sources.
Industry leaders cite rising U.S. gasoline consumption and demand from the Chinese petrochemical sector as major growth drivers. Still, concerns about field depletion rates persist, suggesting a need for continued investments. The market dynamics underscore the ongoing challenge of balancing supply and demand in the global oil industry.
(With inputs from agencies.)
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