OPEC+ Balances Market Tensions with Modest Oil Output Increase
OPEC+ will increase oil output by 137,000 bpd from November, maintaining October's modest rise. This strategy is aimed at regaining market share from U.S. shale producers. Russia and Saudi Arabia had differing views on the output change, with Russia opting for continuity, and Saudi desiring larger increases.
OPEC+ will boost oil production by 137,000 barrels per day (bpd) in November, matching October's moderate increase, according to insiders. This decision is part of a strategy to reclaim market share from rivals like U.S. shale producers.
Although there was agreement on this increase, the lead-up to the meeting revealed differences between Russia and Saudi Arabia, the two most significant producers in the OPEC+ coalition. Russia preferred a restrained hike to avoid oil price pressures due to sanctions related to its conflict in Ukraine.
Conversely, Saudi Arabia pushed for significantly higher increases of up to 548,000 bpd. As of October, OPEC+ has started to ease some of its previous output cuts made over the year, which had peaked last March at 5.85 million bpd.
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