Oil prices surged after the Organization of the Petroleum Exporting Countries (OPEC+) announced a new production hike, marking the third consecutive month of increased output. The move aims to regain market share from US shale drillers and punish countries that over-produce oil.
According to OPEC+, the group will increase production by 411,000 barrels per day in July, following similar hikes in May and June. This decision targets countries like Iraq and Kazakhstan for their excessive oil production, while Saudi Arabia seeks to regain its market share with lower prices.
The long-term impact of this move is expected to be a decrease in crude prices as big oil producers move to regain control over the market. As Saudi Arabia and other major oil producers adjust production levels, they aim to reduce competition from US shale drillers and increase their own market presence.
MarketWatch subscribers can continue reading for more insights on the impact of this decision on global energy markets.
Source: https://www.marketwatch.com/story/oil-prices-set-to-drop-more-as-opec-agrees-to-another-sharp-production-hike-077766c7