
Eight Opec+ nations to hike oil production by 411,000 barrels per day in july
The eight Opec+ countries that voluntarily restricted their oil production agreed on Saturday to increase their combined output by 411,000 barrels per day in July from the June level, reported Sputnik/RIA Novosti.
Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman met virtually to discuss the global market conditions.
"The eight participating countries will...
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Star
6 hours ago
- The Star
Oil gains on supply concerns as wildfires disrupt Canada supply, Opec+ keeps output plans unchanged
NEW YORK: Oil prices climbed nearly 3% on Monday on supply concerns as producer group OPEC+ decided not to accelerate plans to hike output and wildfires in Canada's oil-producing province disrupted production. Brent crude futures settled $1.85, or 2.95%, higher at $64.63 a barrel. U.S. West Texas Intermediate crude gained $1.73, or 2.85%, to $62.52. Wildfires burning in Canada's oil-producing province of Alberta have affected about 7% of the country's overall crude oil output as of Monday, according to Reuters calculations. At least two thermal oil sands operators south of the industry hub of Fort McMurray evacuated workers from their sites over the weekend and shut production as a precaution. "The wildfires in Alberta are now starting to seep in," said John Kilduff, partner at Again Capital in New York. Also supporting prices, the U.S. dollar slipped across the board on Monday on worries that Trump's fresh tariff threats might hurt growth and stoke inflation. A weaker U.S. currency makes dollar-priced commodities such as oil less expensive for buyers using other currencies. Prices were also supported by a perception of increased geopolitical risk after Ukrainian drone strikes against Russia over the weekend, said Rystad Energy's Jorge Leon. Meanwhile, mixed signals from Iran-U.S. talks kept market participants on edge. An Iranian diplomat said on Monday Iran was poised to reject a U.S. proposal to end a decades-old nuclear dispute. Delegations from the two countries made some progress after a fifth round of talks in Rome last month. The Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, decided on Saturday to raise output by 411,000 barrels per day in July, the third consecutive monthly increase of that amount, as it looks to wrestle back market share and punish members that have produced more than their quotas. Sources familiar with OPEC+ talks said on Friday that the group could discuss an even larger increase. Oil traders said the 411,000 bpd increase had already been priced into Brent and WTI futures. Phil Flynn, a senior analyst with Price Futures Group, said investors had expected the oil-producing group to increase production by more than it did. "I think they were caught the wrong way." Goldman Sachs analysts expect OPEC+ to implement a final 410,000 bpd production increase in August. "Relatively tight spot oil fundamentals, beats in hard global activity data and seasonal summer support to oil demand suggest that the expected demand slowdown is unlikely to be sharp enough to stop raising production when deciding on August production levels on July 6," the bank said in a note. Morgan Stanley analysts also said they expect 411,000 bpd to be added back each month up to a total of 2.2 million bpd by October. "With this latest announcement, there is little sign that the pace of quota increases is slowing," the bank's analysts said. - Reuters

The Star
7 hours ago
- The Star
Saudi Arabia tightens grip on Opec+ by pushing through oil surge
RIYADH: When Prince Abdulaziz bin Salman was appointed Saudi Arabia's Energy Minister six years ago, he vowed to heed even the smallest of the Organisation of the Petroleum Exporting Countries and its allies (Opec+). But at the cartel's meeting last weekend, even the most powerful members couldn't block Riyadh's designs. The kingdom steered the group to agree the third super-sized monthly output hike in a row, despite dissent from a faction led by Russia. The Saudis are doubling down on a historic shift, driving oil prices lower as they seek to punish the alliance's quota cheats and reclaim their share of global markets. The policy change dragged crude futures to a four-year low below US$60 a barrel in April, affecting everyone from American drivers to petrochemical users in Asia. It's forcing oil producers to confront an alarming prospect: Just how quickly might the kingdom restart millions more idled barrels? The meeting's outcome marks a new peak in the Saudis' long-running dominance of the Opec+. It raised questions over the future of the alliance and the complex web of relations between Crown Prince Mohammed bin Salman and Russia's Vladimir Putin, as well as US President Donald Trump. 'Saudi Arabia is playing a big role,' Thamir Ghadhban, Iraq's former Deputy Prime Minister for Energy Affairs and Oil Minister from 2018 to 2020, said in an interview before Saturday's meeting. 'There is a sort of power now for the Saudis within Oprc+.' This story is based on conversations with current and former delegates from the organisation and its partners, industry experts and government officials. The latest Opec+ policy shift began on April 3, when Saudi Arabia and seven other Opec+ nations stunned oil markets with the announcement of a supply hike for May of 411,000 barrels a day – triple the scheduled amount. The decision came even as global markets buckled amid faltering Chinese demand and Trump's trade war, causing oil prices to plunge briefly below US$60 a barrel. Rather than build consensus for this reversal, the Saudis had summoned members to an impromptu video conference and unveiled their plans with just days – or in some cases hours – of notice. Officials said they were left in the dark about what was driving the U-turn, offering a range of motives to explain why the world's most stalwart defender of high oil prices was now labouring to sink them. Some representatives said Riyadh simply wanted to appease Trump, who has urged Opec to lower fuel costs and toured Gulf states last month amid a cascade of multi-billion dollar deals. Others believed the kingdom had lost patience with overproduction by Kazakhstan and Iraq, and intended to discipline them through the 'controlled sweating' of lower prices. People familiar with the matter said Riyadh is motivated by the desire to claw back the market share it has relinquished over the years to US shale drillers. The internal confusion persisted when the Saudis convened another video conference in May, resulting in an agreement for a second production surge the following month. This unilateralism contrasts with the early years of Opec+, when negotiations at its headquarters in Vienna could sprawl into the night, or subsequent days, until a compromise between the position of different members was reached. Even though Riyadh typically won, there was at least room for debate. 'Definitely the bigger producer wielded more power, but they were aware that other members have a say and have a role to play,' said Iraq's Ghadhban. 'We had a say. We used to discuss, we used to disagree.' By the time key Opec+ members held their latest monthly video-conference last Saturday, fissures were emerging. Russia, the only member with comparable oil production and geopolitical clout to Saudi Arabia, was supported by Oman and Algeria as it argued for Opec+ to hold output steady in July and wait to assess the impact of earlier increases. But with no other opposition, the Saudi proposal for to another 411,000 barrels a day was approved. While Russia and its allies acquiesced, and delegates denied there was any real split, there was no doubt who carried the day. — Bloomberg


The Star
20 hours ago
- The Star
Oil jumps 3% after OPEC+ keeps output increase unchanged
SINGAPORE (Reuters): Oil prices jumped by about 3% on Monday after producer group OPEC+ kept output increases in July at the same level as the previous two months. Brent crude futures climbed by $1.74, or 2.77%, to US$64.52 a barrel by 0827 GMT. U.S. West Texas Intermediate crude was up $1.94, or 3.19%, at US$62.73. Both contracts lost more than 1% last week. The Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, decided on Saturday to raise output by 411,000 barrels per day (bpd) in July, the third consecutive monthly increase of that amount, as it looks to wrestle back market share and punish members that have produced more than their quotas. Sources familiar with OPEC+ talks said on Friday that the group could discuss an even larger increase. Oil traders said the 411,000 bpd increase had already been priced in to Brent and WTI futures. "Had they gone through with a surprise larger amount, then Monday's price open would have been pretty ugly indeed," Onyx Capital Group analyst Harry Tchilinguirian wrote on LinkedIn. Kazakhstan has informed OPEC that it does not intend to reduce oil production, Russia's Interfax news agency reported on Thursday, citing Kazakhstan's deputy energy minister. "Given the circumstances of a loss in market share and the almost too honest admission from Kazakhstan that it would not cut output, there does seem little choice," PVM analyst John Evans said of the OPEC+ decision. Goldman Sachs analysts expect OPEC+ to implement a final 410,000 bpd production increase in August. "Relatively tight spot oil fundamentals, beats in hard global activity data and seasonal summer support to oil demand suggest that the expected demand slowdown is unlikely to be sharp enough to stop raising production when deciding on August production levels on July 6," the bank said in a note. Meanwhile, low U.S. fuel inventories have stoked supply jitters ahead of what is expected to be a more active than usual hurricane season, analysts said. "More encouraging was a huge spike in gasoline implied demand going into what's considered the start of the U.S. driving season," ANZ analysts said in a note, adding that the gain of nearly 1 million bpd was the third-highest weekly increase in the past three years. (Reporting by Robert Harvey in London and Florence Tan and Michele Pek in Singapore Editing by David Goodman) - Reuters