Eight members of the OPEC Plus oil cartel, including Saudi Arabia and Russia, announced they will accelerate their oil production schedule, adding 411,000 barrels a day starting in May. This decision comes amidst falling oil prices due to concerns over trade frictions impacting global economic growth. While the increase could be seen as a move to appease U.S. President Trump, who promotes lower gas prices, analysts suggest it reinforces Saudi Arabia's stance on quota compliance among cartel members. The overall strategy appears aimed at maintaining power and stability within the market.
The OPEC Plus cartel, led by Saudi Arabia, announced an acceleration of planned production increases, with eight members adding 411,000 barrels per day in May.
Oil prices dropped sharply as rising supplies from OPEC Plus coincided with fears of increased trade frictions impacting global growth, contributing to a decline in Brent crude by 6%.
The decision to ramp up oil production may serve as a gesture to President Trump, who is aiming to lower gas prices for American consumers.
Helima Croft suggested that the increase in production signals Saudi Arabia's readiness to enforce quota compliance among OPEC Plus members and maintain market stability.
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