Translated with AI
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) have decided to increase oil production by 547,000 barrels per day, starting in September, Reuters reported, citing sources within the cartel.
The decision was made during a brief virtual meeting of the eight OPEC+ member countries, which took place amid growing pressure from the US on India to stop purchasing Russian oil. Despite the political context, the cartel's official statement cited the "healthy state of the global economy" and "low oil inventories" as the reasons for the production increase.
Brent crude prices remain relatively high, at around $70 per barrel, significantly above the April low of $58. This strengthens OPEC+ members' confidence in the stability of market fundamentals.
As Amrita Sen, co-founder of the analytics company Energy Aspects, stated, the market structure and inventory levels allow for a confident increase in supply: “The market has so far been successful in absorbing additional volumes, especially thanks to China’s active inventory accumulation.”
Meanwhile, market attention is focused on OPEC+'s next steps and a possible meeting on September 7, at which a new decision could be made on adjusting production quotas, likely towards a further increase.
The fate of Russian exports remains an additional factor of instability. Amid the threat of secondary sanctions from the US, India, according to various reports, may have suspended the acceptance of some tankers carrying Russian oil. However, as Bloomberg reports, no official decision has yet been made by the Indian government, and the matter is being left to the discretion of oil refineries.
