Opec-plus Raises Oil Production Targets Amid Internal Disagreements
Opec-plus has announced a production increase for July, driven by Saudi Arabia's push against overproduction by Iraq and Kazakhstan.
Key Points
- • Opec-plus increases oil production target for July to 411,000 barrels per day.
- • Saudi Arabia advocated for the increase to address overproduction by Iraq and Kazakhstan.
- • Internal disagreements noted among member countries regarding the decision.
- • Current Brent and WTI prices stand at $62.78 and $60.79 per barrel, respectively.
The Opec-plus coalition has officially decided to increase its oil production target for July 2025 to 411,000 barrels per day, according to the announcement made following a video meeting on May 31. This increase reflects a maintenance of production levels from both May and June while surpassing earlier expectations set by the coalition. Saudi Arabia, one of the major influencers within Opec-plus, was a driving force behind this decision, primarily aiming to penalize member countries Iraq and Kazakhstan for exceeding their production quotas. The decision, however, was met with resistance from several members, including Russia, Algeria, and Oman, who voiced their objections during the meeting.
The coalition justifies the increase by citing a stable global economic outlook alongside low oil inventories, which is contributing to healthier market conditions. Analysts predict that this move could lead to a decrease in global oil prices that have recently experienced fluctuations. Current prices stand at $62.78 per barrel for Brent crude and $60.79 per barrel for West Texas Intermediate (WTI).
Opec-plus is set to meet again on July 6 to reassess production targets for August, making this a watchful point for market stakeholders.