OPEC+ agrees to continue increasing oil production

On October 5, the Organization of the Petroleum Exporting Countries and its partners (also known as OPEC+) agreed to continue increasing oil production by 137,000 barrels/day in November, after a similar increase in October.

Oil pipelines at an Iranian oil facility on Khark Island off the Gulf. Photo: AFP/TTXVN

According to OPEC's statement, this decision was made after an online meeting of eight OPEC+ member countries, including Saudi Arabia, Russia, Iraq, the United Arab Emirates (UAE), Kuwait, Kazakhstan, Algeria and Oman. The statement emphasized that, considering the stable global economic outlook and positive market fundamentals reflected in low oil inventories, the eight countries will increase production by 137,000 barrels per day in November, compared to October levels.

The increase was much lower than analysts had expected as OPEC+ did not want to put pressure on prices amid weak demand. Market analyst Jorge Leon at Rystad Energy said OPEC+ was treading cautiously after seeing market tensions amid rumors that the production increase could be as high as 500,000 barrels per day. In other words, OPEC+ is trying to balance maintaining market stability with regaining market share amid oversupply.

OPEC+ prioritized maintaining high oil prices by restricting supply earlier this year, but has changed its strategy since April and is looking to regain market share from other oil suppliers such as the US, Brazil, Canada, Guyana and Argentina. The organization decided to increase oil production by only 137,000 barrels per day in November after the International Energy Agency (IEA) forecast that oil demand would increase by only about 700,000 barrels per day between 2025 and 2026.

Previously, according to OPEC's forecast, global oil demand could increase by 1.3 million barrels/day this year and 1.4 million barrels/day next year. Brent oil prices are trading at $65/barrel, down 8% compared to a week ago due to concerns about increased supply.

Source: https://baotintuc.vn/thi-truong-tien-te/opec-nhat-tri-tiep-tuc-tang-san-luong-dau-20251005213522948.htm