Saudi Arabia pushing OPEC+ for a faster pace of oil production increases in coming months

Saudi Arabia is pushing for OPEC+ to maintain its faster pace of oil production increases in the coming months, aiming to regain market share rather than support prices, according to sources familiar with the matter. This according to a Bloomberg (gated) report.

In summary:

• Saudis wants at least 411,000 barrels per day added in both August and possibly September
• major shift in Saudi strategy — moving away from price defence via output cuts to actively increasing supply, even at the cost of lower prices
• some OPEC+ members like Russia, Algeria, and Oman wanted to pause the increases
• Saudi Arabia sees high seasonal demand as justification to continue

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The next OPEC+ meeting is scheduled for July 6, when output policy for August will be decided.

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This article was written by Eamonn Sheridan at www.forexlive.com.