OPEC+'s big move: Oil production increased for the third time in July, will prices fall further?
Do you know that OPEC+ has decided to increase oil production again? Yes, there will be an increase of 4.11 lakh barrels per day in July – this is the third time in a row! This has not only caused crude oil prices to fall, but has also caused a lot of commotion in the global market.
Why is OPEC+ doing this?
Big countries like Saudi Arabia and Russia believe that the time has come – either to challenge the US and other shale oil companies, or to regain their lost position in the market. Some people say that Saudi Arabia is trying to please US President Trump, while many experts say that production is being increased to meet the growing demand in the market
Impact on oil prices?
Oil prices had already hit a four-year low – $60 per barrel. Now, as OPEC+ continues to increase production, prices are holding at $64 per barrel. But the IMF says Saudi Arabia actually needs $90 per barrel to complete its ambitious projects like the “NEOM” city.
Member countries are not united!
The interesting thing is that not everyone is unanimous even within OPEC+. Russia questioned the July hike, but ultimately the majority decided. At the same time, countries like Kazakhstan are openly saying that they are producing more than their limit – and have no intention of stopping!
What does this mean for you?
If you are a car owner or are struggling to keep up with daily expenses, this is good news. Lower oil prices may bring you some relief. But it is also a challenge for oil producing countries – as their profits are being affected.
In end
This is a big change in the world of oil – and it will be interesting to see what OPEC+ does next. What do you think – will oil prices fall further or will the market make a new move? what you think just comment below .
