Latest news with #productionincrease
Bloomberg
a day ago
- Business
- Bloomberg
OPEC+ Repeats Call for Quota Discipline Before Supply Decision
An OPEC+ committee once again urged members to adhere to oil quotas as they prepare to weigh another production increase. The Joint Ministerial Monitoring Committee noted that some countries didn't stick to their output targets, and instructed them to update plans for making extra cutbacks as compensation, according to a statement on OPEC's website.
Arab News
07-07-2025
- Business
- Arab News
Oil Updates — prices fall as OPEC+ hikes August output more than expected
SINGAPORE: Oil prices slipped on Monday after OPEC+ surprised markets by hiking output more than expected in August, while uncertainty over US tariffs and their potential impact on global economic growth weighed on demand expectations. Brent crude futures fell 24 cents, or 0.35 percent, to $68.06 a barrel by 8:42 a.m. Saudi time, while US West Texas Intermediate crude was at $66.31, down 69 cents, or 1.03 percent. The Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, agreed on Saturday to raise production by 548,000 barrels per day in August. 'The increased production clearly represents a more aggressive competition for market share and some tolerance for the resulting decline in price and revenue,' Tim Evans of Evans Energy said in a note. The August increase is a jump from monthly increases of 411,000 bpd OPEC+ had approved for May, June and July, and 138,000 bpd in April. The decision will bring nearly 80 percent of the 2.2 million bpd voluntary cuts from eight OPEC producers back into the market, RBC Capital analysts led by Helima Croft said in a note. However, the actual output increase has been smaller than planned so far and most of the supply has been from Saudi Arabia, they added. Saudi Arabia on Sunday raised the August price for its flagship Arab Light crude to a four-month high for Asia. Goldman analysts expect OPEC+ to announce a final 550,000 bpd increase for September at the next meeting on Aug. 3. Oil also came under pressure as US officials flagged a delay on when tariffs would begin but failed to provide details on changes to the rates that will be imposed. The US is close to finalizing several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, President Donald Trump said on Sunday, with the higher rates scheduled to take effect on Aug. 1. Trump in April announced a 10 percent base tariff rate on most countries and higher 'reciprocal' rates ranging up to 50 percent, with an original deadline of this Wednesday. However, Trump also said levies could range in value from 'maybe 60 percent or 70 percent tariffs to 10 percent and 20 percent,' further clouding the picture. Investors are worried higher tariff rates could slow economic activity which would reduce demand for oil. 'Concerns over Trump's tariffs continue to be the broad theme in the second half of 2025, with dollar weakness the only support for oil for now,' said Priyanka Sachdeva, a senior market analyst at Phillip Nova.
Zawya
07-07-2025
- Business
- Zawya
OPEC+ is pumping more oil, but is it needed and at what price?: Russell
(The opinions expressed here are those of the author, a columnist for Reuters) LAUNCESTON, Australia - Two questions stand out after the decision by OPEC+ to accelerate increases in crude oil output: who is going to buy the extra crude, and will the group actually export the additional barrels they say they are going to produce? OPEC+ agreed at a weekend meeting to raise production by 548,000 barrels per day (bpd) in August, up from the 411,000 bpd the group had approved for May, June and July, and 138,000 bpd for April. The production boost will come from eight members of the group - Saudi Arabia, Russia, the United Arab Emirates, Kuwait, Oman, Iraq, Kazakhstan and Algeria. The increase for August means that the eight will have unwound 1.919 million bpd of the voluntary 2.2 million bpd they had imposed last year in a bid to support crude prices. OPEC+ cited what it called "steady global economic outlook and current healthy market fundamentals" in the statement announcing the increased August output, sticking to a theme from its recent communiques that the oil market is in fine shape. However, the reality may not be quite as rosy as OPEC+ paints, with tepid demand growth in major consumers such as China, the world's top oil importer. China's crude imports barely rose in the first five months of the year, with official data showing a gain of 0.3%, or 28,500 bpd, to 11.1 million bpd. The growth rate will likely tick up when June data is released next week, with LSEG Oil Research expecting imports of 11.96 million bpd for the month, up from the customs number of 11.30 million bpd for June 2024. While China's imports are likely to have been strong in June, the reason why is not quite so bullish. It is likely that refiners were buying more crude than they intended to process because prices were lower at the time when June-arriving cargoes were arranged. Global benchmark Brent futures hit a four-year low of $58.50 a barrel on May 5 and had been trending lower since early April, the time period when June-arriving cargoes would have been bought. The weakness in prices has seen oil imports by Asia, which buys about 60% of seaborne crude, rise in June, with LSEG estimating arrivals of 28.65 million bpd, the most since January 2023. The higher June imports lifted Asia's arrivals for the first half of 2025 to 27.36 million bpd, up 620,000 bpd for the same period last year. Coincidentally this is largely in line with the demand growth forecasts for the region by the Organization of the Petroleum Exporting Countries, with the group's June monthly report forecasting demand growth of 630,000 bpd for non-OECD Asia in 2025. PRICES KEY The question is whether the second half will see higher imports in Asia, or if the momentum seen in June will dissipate. Much will depend on prices, as history suggests that when prices rise importers such as China and India tend to trim imports and use up stockpiles. The brief surge in prices in mid-June sparked by Israel's attacks on Iran, later joined by the United States, will probably be enough to see China lower imports in August and perhaps September. For imports to rise in the fourth quarter, it will likely take lower oil prices to encourage buying and inventory builds. In that case the ball is largely in OPEC+'s court. If the group starts producing what their quotas allow, and furthermore actually exports this oil, then it's likely that prices will continue to soften, thereby encouraging buying. So far, it appears that actual output has lagged the higher quotas, with the five OPEC members of OPEC+ raising output by 267,000 bpd in June, short of the 313,000 bpd allowed, according to a Reuters survey released on July 4. Much will depend on what Saudi Arabia does, given that OPEC+'s largest exporter is the producer with the most spare capacity and the most ability to raise output. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn and X. The views expressed here are those of the author, a columnist for Reuters. (Editing by Jacqueline Wong)
Yahoo
07-07-2025
- Business
- Yahoo
Oil tumbles as OPEC+ hikes August output more than expected
By Florence Tan SINGAPORE (Reuters) -Oil prices slipped more than 1% on Monday after OPEC+ surprised markets by hiking output more than expected in August, raising concerns about oversupply. Brent crude futures fell 80 cents, or 1.2%, to $67.50 a barrel by 0010 GMT, while U.S. West Texas Intermediate crude was at $65.68, down $1.32, or 2%. The Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, agreed on Saturday to raise production by 548,000 barrels per day in August. "The increased production clearly represents a more aggressive competition for market share and some tolerance for the resulting decline in price and revenue," said Tim Evans of Evans Energy in a note. The August increase represents a jump from monthly increases of 411,000 bpd OPEC+ had approved for May, June and July, and 138,000 bpd in April. OPEC+ cited a steady global economic outlook and healthy market fundamentals, including low oil inventories, as reasons for releasing more oil. The decision will bring nearly 80% of the 2.2 million bpd voluntary cuts from eight OPEC producers back in the market, RBC Capital analysts led by Helima Croft said in a note. However, the actual output increase has been smaller than planned so far and most of the supply has been from Saudi Arabia, they added. In a show of confidence in oil demand, Saudi Arabia on Sunday raised the August price for its flagship Arab Light crude to a four-month high for Asia. Goldman analysts expect OPEC+ to announce a final 550,000 bpd increase for September at the next meeting on August 3. Separately, the United States is close to finalising several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, U.S. President Donald Trump said on Sunday, with the higher rates scheduled to take effect on August 1.
Yahoo
07-07-2025
- Business
- Yahoo
Oil tumbles as OPEC+ hikes August output more than expected
By Florence Tan SINGAPORE (Reuters) -Oil prices slipped more than 1% on Monday after OPEC+ surprised markets by hiking output more than expected in August, raising concerns about oversupply. Brent crude futures fell 80 cents, or 1.2%, to $67.50 a barrel by 0010 GMT, while U.S. West Texas Intermediate crude was at $65.68, down $1.32, or 2%. The Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, agreed on Saturday to raise production by 548,000 barrels per day in August. "The increased production clearly represents a more aggressive competition for market share and some tolerance for the resulting decline in price and revenue," said Tim Evans of Evans Energy in a note. The August increase represents a jump from monthly increases of 411,000 bpd OPEC+ had approved for May, June and July, and 138,000 bpd in April. OPEC+ cited a steady global economic outlook and healthy market fundamentals, including low oil inventories, as reasons for releasing more oil. The decision will bring nearly 80% of the 2.2 million bpd voluntary cuts from eight OPEC producers back in the market, RBC Capital analysts led by Helima Croft said in a note. However, the actual output increase has been smaller than planned so far and most of the supply has been from Saudi Arabia, they added. In a show of confidence in oil demand, Saudi Arabia on Sunday raised the August price for its flagship Arab Light crude to a four-month high for Asia. Goldman analysts expect OPEC+ to announce a final 550,000 bpd increase for September at the next meeting on August 3. Separately, the United States is close to finalising several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, U.S. President Donald Trump said on Sunday, with the higher rates scheduled to take effect on August 1. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
