Oil prices are declining. Economists are forecast for global economic growth. Oil giants are reporting low profits.
However, on Saturday, eight countries in the oil cartel, known as OPEC Plus, say they will add about 411,000 barrels of oil a day in June. Following the group’s similar steps to increase oil production in their April meeting, this step is a major change in the policy that will spread through the broad power industry, hit the profit of oil companies and force the cutbacks.
The group said in a statement that the market was “healthy” and mentioned that the list of oil was low.
Saudi Arabia, the D -Facto leader of OPEC Plus, is refusing to hold millions of barrels that it can make, especially when other members of the group like Kazakhstan and Iraq are not monitoring their agreed manufacturing ceilings.
Richard Bronze, head of the London Research Agency, Energy September, said, “If the other countries of this group, especially in Saudi Arabia, do not want to carry a heavy burden anymore if the other countries of this group do not show their part.”
The demand for oil was not significantly weakened. According to Paris international power agency, the highest time since 2021, in the first quarter of 2021, oil costs increased by 1.2 million barrels a day. Analysts there and elsewhere, however, are cutting their forecasts for demand for disruption from global trade tensions, which has already condemned prices.
International Benchmark Brent Crude prices have dropped around 20 percent since April 3, while Saudi and other producers have indicated that they will increase production.
The American Benchmark West Texas Intermediate price has fallen underneath a barrel this week, it is a marginal where many producers can no longer gain, and analysts say prices can lower. Under such stress, high -cost producers like shell drillers in the United States, which have been increasing in recent years, may be forced to cut the OPEC production restraint, back.
Analysts of S&P Global Commodity Insights writes, “The amount of OPEC plus prices cannot reduce or reduce the output at any time, the burden of imposing on their higher expensive producers.”
Saudi Arabia and the United Arab Emirates, nowadays, are considered to be the main decision -makers among the oil producers, he may tend to further enhance President Trump’s ambition, who is expected to visit Saudi Arabia and other countries in Saudi Arabia and other countries than to assist his predecessor Joseph and Biden Jr..
This price drop for the Trump administration “represents one of the most important economic bright spots”, Helima Croft, RBC Capital Markets, an investment bank, head of the global product, Helima Croft clients, wrote in a recent note. Mr. Trump has promised to reduce energy costs including gas prices for customers.
Analysts say Saudi Arabia and the United Arab Emirates can expect some concessions on defense or artificial intelligence agreements, where both countries have strong aspirations, analysts say. In the meantime, the Trump administration is recovering discussions on nuclear partnerships with Saudi Arabia.
Generally, the OPEC Plus will shake the supply in the market to cut supplies in the market. This national count has been clearly changed between a small group of eight OPECs members, including Saudi Arabia, Russia and the United Arab Emirates. Instead, they are involuntary to make their production restricted by about 2.2 million barrels a day.
Later, this small group is meeting to deal with the OPEC Plus in the back seat. Saudi Arabia seems to be running the process.
Bhushan Bahar, executive director of S&P Global, said, “Whether or not wanting to cut further production to support the prices of Saudi Arabia and the United Arab Emirates has really come down.”
So far, don’t answer.
The United Arab Emirates is one of the number of producers with Kazakhstan and Iraq, which is interested in increasing production to adjust the output associated with oil and gas investment in international companies.
The International Energy Agency said Kazakhstan produced about 5 barrels on the OPEC Plus ceiling in March. At the same time, Iraq has exceeded its ceiling by 440,000 barrels a day and the UAE by 350,000.
Investors like Kazakhstan Chevron and Axon Mobil seem to be reluctant to have a few billion dollars to produce a million barrels a day in the country’s Tanges oil field.
Chevron’s chairman and chief executive Mike Ryth told analysts during an analyst’s call on Friday, “We are not involved in discussing the OPEC or OPEC Plus goals.” Mr With has added that the Teongiez is an important source of revenue for the Kazakhstan government and the Histor is not “reduced”.
The Kazakhstan Energy Ministry said in an email statement, “We follow national interests, we strictly observe our international obligations.”
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