Saudi Arabia pushes OPEC+ to boost oil output despite Russia
Saudi Arabia led the OPEC+ group in a way that resulted in the cartel agreeing to a third consecutive large monthly increase in oil production, despite opposition from the faction led by Russia, Bloomberg reports.
OPEC+ agreed to increase oil production in July by 411 thousand barrels per day (bpd), matching the increases in May and June, as the group of oil-producing countries continues to boost supply more rapidly 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, Bloomberg reported on Monday.
According to the agency, the kingdom guided the cartel to agree to a third consecutive large monthly increase in production, despite the opposition from the faction led by Russia.
Eight OPEC+ countries have been increasing production faster than planned since May, even though the additional supply has weighed on prices. The strategy of the group leaders, Saudi Arabia and Russia, is partly aimed at punishing allies that are overproducing and reclaiming market share, Reuters reported.
