Before the decision, it was noted that Russia and Saudi Arabia, the two largest OPEC+ producers, held different views. However, production will increase in November, and these changes should help restore market share in the fight against competitors, UNN reports with reference to Reuters.
Details
OPEC+ will increase oil production from November by 137,000 barrels per day (bpd). Amid constant fears of a supply glut, a moderate monthly increase has been agreed upon.
The group, which includes the Organization of the Petroleum Exporting Countries, Russia, and some smaller producers, has increased its oil production targets by more than 2.7 million bpd this year, equivalent to approximately 2.5% of global demand.
The explanation states that the policy change after years of cuts is aimed at regaining market share from competitors such as US shale producers.
It is important to note that both Russia and Saudi Arabia held different views beforehand.
Moscow advocated for a small increase in production to avoid pressure on oil prices, and also because it would be difficult for Russia to increase production due to sanctions imposed in connection with the Russian army's war in Ukraine, Reuters writes.
Saudi Arabia, according to the publication's sources, would prefer to double, triple, or even quadruple this figure - even up to 548,000 barrels per day. The Middle Eastern country has spare capacity and wants to regain market share faster, Reuters notes, citing sources.