The countries in the oil cartel Opec plus have agreed to increase oil production in August – significantly more than expected.
Prior to the virtual meeting over the weekend, market expectations were that the oil cartel would increase production to the same extent as in recent months, i.e. by 411,000 barrels daily. Instead, they have now chosen to accelerate production to 548,000 barrels.
From the analysts' point of view, the message is interpreted as the cartel now trying to take market shares while the oil price has fallen due to decreased demand, among other things from China.
The oil cartel includes, among other things, Saudi Arabia and Russia.
A barrel of Brent oil is traded for 68.2 dollars. A barrel of WTI oil is traded for 65.5 dollars.
