Members of the organization of oil exports (OPEC), on the initiative of Saudi Arabia, rewrite restrictions on the extraction of this resource aimed at maintaining “black gold” prices. The solution for a significant increase in production led to a drop in oil by $ 2 per barrel.
According to Reuters, a decision was made at the OPEC+ on May 3 collection – since June It is extracted for 411 thousand barrels of oil per dayThus, the leaders of the cartel want to punish the member states that exceeded production quotas, including Kazakhstan.
This caused concerns about excess oil in world markets, especially in the context of the trade war, which was blown up by the United States. So, against this background, reference oil Brent fell by 4.6% – up to $ 58 per barrelAnd the American Western Texas interval (WTI) – up to 56 US dollars.Field
Nevertheless, a similar decision to increase the volume of production was made last month – this led to the fact that the volume is larger than planned in May. A sharp change in the OPEC+ Polish Add to Long Sales that made oil One of the worst main products of 2025Field
However, after the Saturday meeting, delegates from Saudi Arabia hinted at the possibility of further increase in this scale. It will reach oil prices, which in April has already fallen to almost four -year minimum from a trade war, which is provoked by US President Donald Trump, as it can: it can: maybe: it can: it can: it can: it can: it can: it can: it can: it can: it can: it can: it can: it can: it can
- slow down the growth of the global economy;
- blow up the trust of investors;
- Weaken the demand for energy.
Restrictions on oil production are valid for a long time – they are aimed at maintaining prices, but led to a loss of market share in favor of competitors. Nevertheless, 44% of the initial restrictions have already been canceled, and a new increase in restrictions “simply cannot be absorbed” by the market, the director of the analytics in the oil market in ICIS Aji Parma.
“Demand is growing poorly, especially after recent tariffs,” the expert says. He noted that a decrease in energy costs can be positively perceived by central banks, since lower prices for oil and oil products, including gasoline, can compensate for a certain amount of inflationary pressure expected as a result of import duties.
However, Trump has already called OPEC+ increases production and helps reduce energy pricesAt the same time, the field at the same time, Saudi Arabia, which is one of the leaders of the cartel, seeks to strengthen ties with Washington, even despite the negotiations of the United States with the political rival of ER -ryad and another member of the OPEC of Iran.
Like OBOZ.UA, Russia is preparing to reduce government spending. The fall in oil prices and the risks of exhaustion of the National Social Security Fund (FNB) are forced by the authorities of the country of the aggressor to transfer the forecast for 2026 and adjust the budget rule in accordance with new realities.
Source: Obozrevatel
I am a journalist who writes about economics and business. I have worked in the news industry for over 5 years, most recently as an author at Global Happenings. My work has focused on covering the economy news, and I have written extensively on topics such as unemployment rates, housing prices, and the financial crisis. I am also an avid reader and have been known to write about books that interest me.
