OPEC+, the oil cartel, will increase oil production next month significantly more than expected. OPEC+ was already working with three times the oil production as originally planned. According to market experts, an oil surplus threatens later this year, which could lead to lower prices at the pump.
The oil cartel is increasing production by 548,000 barrels per day. In previous months, production was increased by 411,000 barrels per day each time.
OPEC+ is led by Saudi Arabia and Russia. The Saudis are said to want to put pressure on oil prices with higher production in order to appease US President Donald Trump. He has regularly asked OPEC+ to increase production to lower fuel prices. That is one of Trump’s election promises.
Russia and Saudi Arabia also want to gain market share at the expense of American shale oil producers. Lower prices mean that these companies get less return from oil extraction, which also makes investments in new fields less attractive.