The article discusses a strategic move by OPEC+ (a collaboration between OPEC and non-OPEC oil-producing countries like Russia) to increase oil production by 547,000 barrels per day starting in September. This decision comes amid efforts by the United States to pressure Russia by urging countries, such as India, to halt imports of Russian crude oil. The increase in oil supply is interpreted as part of a strategy by Washington to push Moscow towards peace negotiations concerning the ongoing conflict in Ukraine.
Previously, OPEC+ had implemented a voluntary production cut of 2.2 million barrels per day in 2022, amid concerns over the spread of electric vehicles and weak demand from China. These production cuts failed to stabilize prices and resulted in a loss of market share to non-OPEC countries like the United States, Brazil, and Canada. As a result, OPEC+ has gradually shifted towards increasing supply, reflected in recent months with increasing production levels each month, including the introduction of additional allowances for countries such as the UAE.
This strategic shift by OPEC+ is seen as an attempt to reassert its influence in the global oil market while aligning with geopolitical strategies aimed at influencing Russian actions on the international stage.