Key OPEC+ members brought forward to Saturday an online meeting where they’re set to consider a fourth bumper oil production increase, delegates said.
Saudi Arabia and its partners have been discussing another output hike of 411,000 barrels a day for August as their base-case scenario as they seek to recoup lost market share. The video-conference was moved one day earlier because of scheduling issues, said the officials, who asked not to be identified since the change isn’t yet public.
The Organization of the Petroleum Exporting Countries has roiled markets in recent months by speeding up the return of halted output, despite faltering demand and an impending surplus. Their strategy shift is dragging crude prices lower, offering relief to consumers and playing into calls from US President Donald Trump for cheaper fuel.
Eight major OPEC+ members have already agreed to restart 411,000 barrels a day in May, June and July, triple the rate they initially scheduled. Officials have said that Riyadh is eager to revive more idle production as quickly as possible to regain market share ceded to US shale drillers and other rivals.
The kingdom’s pivot away from years of supply restraint aimed at shoring up crude prices has upended traders’ assumptions about what role the OPEC+ alliance will continue to play in world oil markets.
Brent crude futures traded near $68 a barrel in London on Friday. The international benchmark plunged 12% last week as a tentative truce between Israel and Iran allayed fears over the threat to Middle East energy exports.
Further OPEC+ increases threaten to create a glut. Global oil inventories have been building at a brisk clip of around 1 million barrels a day in recent months as demand cools in China and supplies continue to swell across the Americas.
Markets are headed for a substantial surplus later this year, according to the International Energy Agency, and forecasters such as JPMorgan Chase & Co. are expecting lower prices.
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