Latest news with #AlexLawler
Yahoo
3 days ago
- Business
- Yahoo
OPEC+ oil producers stick to their guns with another big hike for July
By Alex Lawler, Olesya Astakhova and Ahmad Ghaddar LONDON/MOSCOW (Reuters) -The world's largest group of oil producers, OPEC+, stuck to its guns on Saturday with another big increase of 411,000 barrels per day for July as it looks to wrestle back market share and punish over-producers. Having spent years curbing production - more than 5 million barrels a day (bpd) or 5% of world demand - eight OPEC+ countries made an modest output increase in April before tripling it for May, June and now July. They are spurring production despite the extra supply weighing on crude prices as group leaders Saudi Arabia and Russia seek to win back market share as well as punish over-producing allies such as Iraq and Kazakhstan. "Today's decision only goes to show that market share is on top of the agenda. If price will not get you the revenues you want, they are hoping that volume will," said analyst Harry Tchilinguirian of Onyx Captal eight countries held an online meeting on Saturday to set July production. The also discussed other options, an OPEC+ delegate said. On Friday, sources familiar with OPEC+ talks had said they could discuss an even larger hike. In a statement OPEC+ cited a "steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories" as its reasoning for the July increase. OPEC+ pumps about half of the world's oil and includes OPEC members and allies such as Russia. Its increased supply is weighing on crude prices, squeezing all producers, but some more than others, including a key group of rivals - U.S. shale producers, analysts say. "Three strikes from OPEC+, and none were softballs. May warned, June confirmed, and July fires a shot across the bow," said Jorge Leon, head of geopolitical analysis at Rystad and a former OPEC official. Since April, the OPEC+ eight have now made or announced increases totalling 1.37 million bpd, or 62% of the 2.2 million bpd they aim to add back to the market. Higher summer oil demand favours increasing output at this time, OPEC+ officials including Russian Deputy Prime Minister Alexander Novak have said. "The oil market remains tight indicating it can absorb additional barrels, as the effective increase should be smaller as several of the eight countries are overproducing, and demand is seasonally rising," said Giovanni Staunovo, analyst at UBS. Algeria was among a small number of nations that requested a pause in the output hikes on Saturday, a source familiar with the matter said. Oil prices fell to a four-year low in April, slipping below $60 per barrel after OPEC+ said it was tripling its output hike in May and as U.S. President Donald Trump's tariffs raised concerns about global economic weakness. Prices closed just below $63 on Friday. Global oil demand is expected to grow by an average of 775,000 bpd in 2025, according to a Reuters poll of analysts published on Friday, while the International Energy Agency in its latest outlook saw an increase of 740,000 bpd. Besides the 2.2 million bpd cut that the eight members started to unwind in April, OPEC+ has two other layers of cuts that are expected to remain in place until the end of 2026.
Yahoo
3 days ago
- Business
- Yahoo
OPEC+ oil producers stick to their guns with another big hike for July
By Alex Lawler, Olesya Astakhova and Ahmad Ghaddar LONDON/MOSCOW (Reuters) -The world's largest group of oil producers, OPEC+, stuck to its guns on Saturday with another big increase of 411,000 barrels per day for July as it looks to wrestle back market share and punish over-producers. Having spent years curbing production - more than 5 million barrels a day (bpd) or 5% of world demand - eight OPEC+ countries made an modest output increase in April before tripling it for May, June and now July. They are spurring production despite the extra supply weighing on crude prices as group leaders Saudi Arabia and Russia seek to win back market share as well as punish over-producing allies such as Iraq and Kazakhstan. "Today's decision only goes to show that market share is on top of the agenda. If price will not get you the revenues you want, they are hoping that volume will," said analyst Harry Tchilinguirian of Onyx Captal eight countries held an online meeting on Saturday to set July production. The also discussed other options, an OPEC+ delegate said. On Friday, sources familiar with OPEC+ talks had said they could discuss an even larger hike. In a statement OPEC+ cited a "steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories" as its reasoning for the July increase. OPEC+ pumps about half of the world's oil and includes OPEC members and allies such as Russia. Its increased supply is weighing on crude prices, squeezing all producers, but some more than others, including a key group of rivals - U.S. shale producers, analysts say. "Three strikes from OPEC+, and none were softballs. May warned, June confirmed, and July fires a shot across the bow," said Jorge Leon, head of geopolitical analysis at Rystad and a former OPEC official. Since April, the OPEC+ eight have now made or announced increases totalling 1.37 million bpd, or 62% of the 2.2 million bpd they aim to add back to the market. Higher summer oil demand favours increasing output at this time, OPEC+ officials including Russian Deputy Prime Minister Alexander Novak have said. "The oil market remains tight indicating it can absorb additional barrels, as the effective increase should be smaller as several of the eight countries are overproducing, and demand is seasonally rising," said Giovanni Staunovo, analyst at UBS. Algeria was among a small number of nations that requested a pause in the output hikes on Saturday, a source familiar with the matter said. Oil prices fell to a four-year low in April, slipping below $60 per barrel after OPEC+ said it was tripling its output hike in May and as U.S. President Donald Trump's tariffs raised concerns about global economic weakness. Prices closed just below $63 on Friday. Global oil demand is expected to grow by an average of 775,000 bpd in 2025, according to a Reuters poll of analysts published on Friday, while the International Energy Agency in its latest outlook saw an increase of 740,000 bpd. Besides the 2.2 million bpd cut that the eight members started to unwind in April, OPEC+ has two other layers of cuts that are expected to remain in place until the end of 2026.
Zawya
7 days ago
- Business
- Zawya
OPEC+ to keep oil output policy steady on Wednesday, source says
An OPEC+ meeting on Wednesday will not make any decisions on oil output policy, a source told Reuters while an online meeting of the countries was under way. A separate meeting on Saturday of eight OPEC+ countries is expected to decide on an increase in oil output for July, sources earlier told Reuters. Wednesday's meeting is set to adopt a mechanism for deciding OPEC+'s baselines for 2027 production, two other sources said. (Reporting by Alex Lawler, Ahmad Ghaddar, Olesya Astakhova, Maha El Dahan and Yousef Saba, Editing by Kirsten Donovan)
Yahoo
27-05-2025
- Business
- Yahoo
OPEC+ set to agree July oil output hike this week, sources say
By Ahmad Ghaddar, Alex Lawler and Yousef Saba LONDON/DUBAI (Reuters) - OPEC+ is likely to agree to a further accelerated oil output hike for July this week, three delegates from the group told Reuters, in the latest stage of a plan to meet rising demand and increase market share. When the 22-member group meets on Wednesday to review the market, it is not expected to change policy, the sources said. But they said they expected an output hike to be agreed for July when the eight OPEC+ members meet on Saturday. OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, has agreed three layers of output cuts since 2022 to support the market, two of which are in place until the end of next year. Eight members began unwinding the most recent layer in April, and for May and June made larger-than-expected hikes of 411,000 barrels per day. Three OPEC+ sources told Reuters the eight members at their meeting on Saturday may decide on a similar 411,000 bpd output hike for July. All sources declined to be identified by name due to the sensitivity of the matter. "We assign a high probability to another sizeable output increase of 411,000 bpd," SEB analyst Ole Hvalbye said. "However, this potential hike seems largely priced in already," he added. United Arab Emirates Energy Minister Suhail Mohamed Al Mazrouei, asked about the plan for July output on Tuesday, said OPEC+ was doing its best to balance the oil market and needed to be mindful of rising demand. Oil fell to a four-year low in April below $60 per barrel after OPEC+ said it was accelerating its output hike in May and as U.S. President Donald Trump's tariffs raised concerns of global economic weakness. Since then it has recovered to about $65. Earlier this month, sources told Reuters that the eight countries, in addition to another 411,000 bpd output hike for July, may unwind the remainder of their voluntary hikes by the end of October. Wednesday's talks are scheduled to begin at 1300 GMT, the sources said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
OPEC expects slower 2025 oil supply growth from rivals after price drop
By Alex Lawler LONDON (Reuters) - OPEC on Wednesday trimmed its forecast for growth in oil supply from the United States and other producers outside the wider OPEC+ group this year and said it expected lower capital spending following a decline in oil prices. Supply from countries outside the Declaration of Cooperation - the formal name for OPEC+ - will rise by about 800,000 barrels per day in 2025, OPEC said in a monthly report, down from last month's forecast of 900,000 bpd. A slowdown in supply growth outside OPEC+, which groups the Organization of the Petroleum Exporting Countries plus Russia and other allies, would make it easier for OPEC+ to balance the market. Rapid growth from U.S. shale and from other countries has weighed on prices in recent years. In recent weeks, oil prices have come under pressure from OPEC+'s decisions to increase output in May and June more rapidly than first planned, and from U.S. President Donald Trump's tariffs. In the report, OPEC said it expected investment in exploration and production outside OPEC+ in 2025 to decline by about 5% year-on-year. In 2024, investment rose by about $3 billion year-on-year to reach $299 billion, OPEC said. "The potential impact on production levels in 2025 and 2026 of the decline in upstream E&P oil investments will constitute a challenge, despite the industry's continued focus on efficiency and productivity improvements," OPEC said in the report. While the United States is still expected to drive supply growth, OPEC expects U.S. total oil output to rise by about 300,000 bpd this year. Last month, it forecast growth of 400,000 bpd. It left its forecasts for global oil demand growth unchanged in 2025 and 2026, after reductions last month. It cited the impact of first-quarter demand data and trade tariffs. The group welcomed this week's trade agreement by the United States and China. "The 90-day trade agreement between the U.S. and China suggests the potential for more lasting agreements, likely supporting a normalisation of trade flows but at potentially elevated tariff levels compared to pre-April escalations," OPEC said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
