OPEC+ has agreed to increase oil production by an additional 548,000 barrels per day for September, effectively reversing a 2.2 million-barrel cut made earlier in 2023. This decision marks a significant shift from a price-defense strategy to an open supply approach, aiming to recover global market share. The recent changes have provided some relief for drivers, although it may lead to a larger global supply surplus later in the year. As geopolitical tensions ease, oil prices are recovering toward $70 per barrel.
OPEC+ is implementing an increase of 548,000 barrels a day in September, completing the recovery of a 2.2 million-barrel cut made earlier this year. This increase counters previous strategies of defending prices, and shifts to enhancing supply amid global demand.
The latest production hike is seen as a remedy for both geopolitical tensions and seasonal demand, providing respite for consumers and support for economic policies, but it could also lead to a surplus.
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