Saudi leadership steers OPEC+ to third production boost
Saudi Arabia led the OPEC+ group in a manner that resulted in the cartel consenting to a third consecutive substantial monthly increase in oil production, despite opposition from the faction led by Russia, reports Bloomberg.
OPEC+ agreed to increase oil production in July by 411,000 barrels per day (bpd), the same as in May and June, as the consortium of oil-producing countries continues to boost supply faster than previously planned.
On Monday, the popular Brent crude oil was priced at $64.34 per barrel. The crude oil price was $62.50, and American WTI was $62.49 per barrel.
When Prince Abdulaziz bin Salman was appointed Saudi Arabia’s energy minister six years ago, he vowed to heed even the smallest of OPEC+ nations. But at the cartel’s meeting this weekend, even the most powerful members couldn’t block Riyadh’s designs, writes Bloomberg on Monday.
The agency adds that the kingdom led the cartel in such a way that it agreed to a third consecutive significant monthly increase in production, despite opposition from the Russian-led faction.
Eight OPEC+ countries have been increasing production faster than planned since May, even though the additional supply has put pressure on prices. The strategy of the group leaders, Saudi Arabia and Russia, is partly aimed at disciplining allies that are overproducing and reclaiming market share, reported Reuters.
