OPEC+ will pump an extra 411,000 barrels per day (bpd) in July, marking the third straight monthly increase as the group doubles down on a market share strategy.
Eight OPEC+ countries, including Saudi Arabia, Russia, Iraq and the UAE, agreed on the new boost at a weekend meeting. Since April, the alliance has lifted output by 1.37 million bpd\u00151 about 62 percent of its planned 2.2 million bpd return from voluntary cuts scheduled to unwind starting April 2025.
The decision reflects OPEC+'s confidence in a steady global economic outlook and healthy market fundamentals, including low oil inventories. But with crude prices skidding to four-year lows below $60 a barrel in April, analysts warn the added supply could keep downward pressure on revenues.
"If price will not get you the revenues you want, they are hoping that volume will," said Onyx Capital Group analyst Harry Tchilinguirian, underlining the group's market share focus.
OPEC+ accounts for roughly half of the world's oil production. Its extra barrels are squeezing all producers\u00151 but US shale drillers may feel the pinch the most. Shale costs have risen over the past three years, and many operators need around $65 a barrel to break even, according to a Q1 Dallas Fed survey of more than 100 oil and gas companies in Texas, New Mexico and Louisiana.
As OPEC+ leans into volume growth, global producers will watch closely to see if lower prices spark longer-term demand or force some drillers to pause projects. For now, the energy world braces for a July output surge.
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OPEC+ to hike oil production in July, prioritizing market share
cgtn.com
