Oliek cartel OPEC+ reached an agreement on Sunday on an increase in oil production in October. According to experts, this expansion can lead to lower prices at the pump later this year.
OPEC+ expands daily production with 137,000 barrels. Oil production has been considerably increased several times this year. For example, 548,000 barrels were pumped up every day last month. In May, June and July, 411,000 barrels were produced more per day.
According to market connoisseurs, the extra production may ensure an oil surplus later this year. If the oil becomes cheaper, it is also reflected in the pump. Although other things also play a role, such as taxes and the pricing policy of gas stations.
OPEC+ is led by Saudi Arabia and Russia. The Saudis want to make US President Donald Trump happy with lower oil prices and therefore increase production. Trump has arranged for a higher OPEC+production to reduce fuel prices. That is one of his election promises.
Russia and Saudi Arabia also want to win market share at the expense of American shale oil producers. Through lower prices, those companies get less return from oil extraction, which also makes investments in new fields less attractive.
Oil cartel OPEC+ REACHED an Agreement on Sunday to Increase Oil Production in October. Accordance to experts, this expansion could lead to lower prices at the pump later this year.
OPEC+ is Expanding Daily Production by 137,000 barrels. Oil Production has already leg significantly increased Several Times this year. For Example, 548,000 extra barrel’s Were Pumped Up Daily Last Month. In May, June and July, 411000 more barrels were produced per day.
Accordance to Market Experts, the extra production May Lead to An Oil Surplus later this year. If Oil Becomes Cheaper, this will also be reflected at the Pump. However, other factors also play a role, such as taxes and the pricing policy of gas stations.
OPEC+ is LED by Saudi Arabia and Russia. The Saudis Want to please us President Donald Trump With Lower Oil Prices and Are Therefore Increasing Production. Trump himself has has Regularly Asked for Higher OPEC+ Production to Lower Fuel Prices. That is one of his election promises.
Russia and Saudi Arabia also because to Gain Market Share at the Expense of American Shale Oil Producers. Lower Prices mean that thesis companies get less return from Oil Extraction, which also makes investments in New Fields Less Attractive.