OPEC Plus Members Say They Will Fast-Track Oil Output
Eight members of the OPEC Plus oil cartel said Saturday that they planned to continue their accelerated increases in production in July, the third consecutive month.
The group, including Saudi Arabia and Russia, said in a news release that it was acting 'in view of a steady global economic outlook and current healthy market fundamentals.' They pegged the increase at 411,000 barrels a day, although analysts say the actual amount is likely to be less.
The move, which was expected, indicates a marked shift in oil policy by Saudi Arabia, the de facto leader of the group.
Until recently, the Saudis had kept output at what was for them an uncomfortably low level to bolster oil prices, even though other members of OPEC Plus had exceeded their cap. Saudi Arabia will gain the largest share of the combined increases — boosting its ceiling to about 9.5 million barrels a day.
The Saudis and other OPEC Plus members like the United Arab Emirates had chafed because some members including Iraq and Kazakhstan had exceeded their ceilings. The Saudis are now sending a message that they will not restrain output if others don't.
A catalyst for the change, analysts say, is President Trump, who warmly courted Saudi Arabia's de facto ruler, Mohammed bin Salman, as a commercial and strategic partner.
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