OPEC+ Sets Stage for Oil Output Surge Amidst Global Demand
OPEC+ countries, led by Saudi Arabia and Russia, plan to further increase oil output starting November to regain market share. The group, increasing targets by over 2.6 million barrels per day this year, debates an increase of 137,000 bpd or more amidst shifting global demands.
OPEC+ nations, comprising the Organization of the Petroleum Exporting Countries alongside Russia and other producers, will discuss further oil output increases at their Sunday meeting. Sources reveal Saudi Arabia's push for a larger increase, while Russia advocates a conservative rise. This year, output targets have grown by 2.6 million barrels per day, matching approximately 2.5% of global demand.
The policy shift, after years of cuts, aims to reclaim market share from competitors, notably U.S. shale producers. While Saudi Arabia and Russia occasionally disagree on output increase scales, they typically reach consensus. Russia suggests maintaining the increase at 137,000 bpd for November, unchanged from October, to avoid price surges and due to production constraints from sanctions.
OPEC+ sources indicate a tentative agreement on the 137,000 bpd increase ahead of Sunday's meeting. Discussions also consider figures up to 548,000 bpd. Past output cuts peaked at 5.85 million bpd in March. The present strategy initiates unwinding cuts, with the second layer of 1.65 million bpd already starting to lift in October.
(With inputs from agencies.)
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