Sunday, August 3, 2025

Latest

OPEC+ Mulls It May Tap the Brakes After September’s Barrel Hike

OPEC and its allies are weighing a pause to their fast-tracked production revival once the final 550,000-barrel-per-day tranche of their current plan lands in September, delegates familiar with the private talks said this week. The discussion—still “at an early stage,” according to one delegate—would halt any further unwinding of the alliance’s remaining 1.66 million bpd of voluntary cuts until market conditions stabilize.

Saudi Arabia and its closest partners have already penciled in the last slice of their 2.2 million bpd rollback for September. A video conference of the eight key OPEC+ ministers on August 3 will finalize the schedule, while a full ministerial meeting in early August will decide whether to stand pat thereafter.

Brent fell 0.9% to US$69.57 a barrel on Wednesday, erasing part of this month’s rally. Futures had surged after OPEC+ surprised markets in April by accelerating its supply comeback—a move that chased benchmark prices from the mid-seventies into the high-sixties and drew open praise from President Donald Trump for easing pump price pressures.

Yet the cartel’s sprint back to pre-cut output has exposed familiar strains in execution. A Reuters-led survey found Algeria, Iraq, Kuwait, Saudi Arabia, and the United Arab Emirates lifted production by only 180,000 bpd in May—roughly 40% short of their pledge. Iraq even trimmed barrels to make up for earlier overproduction, echoing Kazakhstan’s recent struggle with quota discipline.

A pause could therefore serve two purposes. First, it would buy time for serial overproducers to close compliance gaps without forcing a formal penalty phase that could fracture the alliance. Second, it would test whether the roughly $4 slide in Brent since April is enough to stoke demand without triggering another price rout that would erode members’ fiscal cushions.

All eyes now turn to the ministerial call next month, where the Saudi-led core will test consensus on parking further hikes.


Information for this story was found via Bloomberg and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

San Dimas: First Majestic Silver’s Sleeper Asset

New Gold Q2 Earnings: Record Free Cash Flow

STLLR Gold: The Tower Gold PEA

Recommended

Tsunami Warnings Spread As Largest Quake Since 2011 Hits Russia

Northern Superior Intersects 1.75 g/t Gold Over 65.0 Metres At Philibert

Related News

Global Oil Market Shaken by OPEC+ Decision and Iraq’s Rejection of Further Cuts

The oil market experienced significant volatility recently following the announcement by OPEC+ to extend output...

Wednesday, June 5, 2024, 12:34:00 PM

OPEC+ Supply Dips as Saudi Arabia’s Production Cuts Take Effect

In July, the oil supply from OPEC+ saw a significant dip of 1.2 million bpd,...

Saturday, August 19, 2023, 03:29:00 PM

OPEC+ Might Cut Production Further By 1Mbpd To Anticipate Oil Price Decline — JP Morgan

It might be necessary for OPEC+ to cut its oil production further by 1 million...

Friday, September 9, 2022, 11:50:00 AM

Cartel Clash: Saudi Arabia, OPEC+ Members Argue Over Oil Production Quotas

In a high-stakes battle for oil dominance, tensions erupted within OPEC as Saudi Arabia and...

Monday, June 5, 2023, 08:20:00 AM

Oil Markets Signal Relief After Contained Middle East Action

International crude markets experienced a dramatic downturn Monday as investors responded to Israel’s limited military...

Monday, October 28, 2024, 04:10:00 PM