Eight countries, including Saudi Arabia and Russia, announced a significant increase in oil production for the month of June. According to a statement from OPEC+, the coalition plans to produce an additional 411,000 barrels per day, which remains at the level of May, although the initial plan was to increase by 137,000 barrels a day.
Georg Leon, an expert from "Rystad Energy," stated yesterday to "France Press" that OPEC+ literally "threw a bomb" on the oil market. He added that after the hint made last month, today's decision sends a clear message: the group is changing its strategy and aims to restore its supply on the market after years of decline.
According to analysts, this change in strategy is also aimed at establishing "good relations with the United States during the Donald Trump era." After returning to power, U.S. President Donald Trump urged Saudi Arabia to increase oil production to lower prices.
OPEC, under the leadership of Saudi Arabia, formed the OPEC+ alliance in 2016 with other countries, including Russia, to address market problems. Up until recently, 22 countries of the coalition, most of which heavily depend on oil revenues, used the deficit of supply to increase prices, maintaining millions of barrels as reserves.
According to Saudi Arabia and Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman agreed to continue increasing production.
