OPEC logo is seen in this illustration taken, October 8, 2023.Reuters/Dado Ruvic/Illustration/File
Posted on 06/10/2025 7:39:12 AM PDT by SunkenCiv
The world's largest group of oil producers, OPEC+, stuck to its guns on Saturday with another big increase of 411,000 barrels per day for July as it looks to wrestle back market share and punish over-producers.
Having spent years curbing production - more than 5 million barrels a day (bpd) or 5% of world demand - eight OPEC+ countries made a modest output increase in April before tripling it for May, June and now July.
They are spurring production despite the extra supply weighing on crude prices as group leaders Saudi Arabia and Russia seek to win back market share as well as punish over-producing allies such as Iraq and Kazakhstan...
The eight countries held an online meeting on Saturday to set July production. They also discussed other options, an OPEC+ delegate said. On Friday, sources familiar with OPEC+ talks had said they could discuss an even larger hike.
In a statement OPEC+ cited a "steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories" as its reasoning...
Its increased supply is weighing on crude prices, squeezing all producers, but some more than others, including a key group of rivals - U.S. shale producers, analysts say...
Since April, the OPEC+ eight have now made or announced increases totalling 1.37 million bpd, or 62% of the 2.2 million bpd they aim to add back to the market...
Algeria was among a small number of nations that requested a pause in the output hikes on Saturday, a source familiar with the matter said...
Besides the 2.2 million bpd cut that the eight members started to unwind in April, OPEC+ has two other layers of cuts that are expected to remain in place until the end of 2026.
(Excerpt) Read more at reuters.com ...
OPEC logo is seen in this illustration taken, October 8, 2023.Reuters/Dado Ruvic/Illustration/File
The Reuters headline is trying to give the impression that prices are being "hiked" when it is oil production that is increasing (which will lower prices).
No matter how much you hate them, it isn't enough.
Sounds to me like the production increases are designed to put US producers out of business.
The US patch needs at least $70 per bbl to survive, and I don’t think we’ll see that again for quite some time.
Ding, ding. Winner.
If this is good news, I wonder why crude oil is up to $66/bbl?
Are you insinuating a journalist relies on people who just browses the headlines and would have a totally BS headline? Come on man.
If crude is up to $66/bbl, do you wonder why the supply is going up?
I’m old enough to remember the 70s “Peak Oil” hoax and how it was on the verge of extinction.
Seems Mother Earth keeps organically producing more and more and more and...
Fossil fuel? LOL!!!
You are correct. The article makes nearly no sense and if you did not understand the backstory, it would be confusing.
Maybe the first and foremost thing about which to be aware is there is widespread indication that these production increases announced are not happening. Various producers have not hit these expanded quotas.
The eradication of US shale production is certainly a goal, but there are widespread indications that is already happening, regardless of what OPEC+ does.
Everyone take a moment and have a look at this:
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFPUS1&f=M
That is what US oil output looked like until interest rates crashed to 0% in the financial apocalypse of 2009. There was no new oil found in 2009. The oil in the NoDak Bakken and Permian has always been known about, but the interest on the very steep loan to drill and frack was prohibitive, even at 6%. When rates went to 0%, presto, new oil. Yes, interest rates, not price. Oil was priced at MINUS $20 for 24 hours in 2020.
The word is out that those sources are going empty. This is the dirty secret of oil. It doesn’t matter what the price is or what interest rates are if there’s nothing there.
Anyway, hate that perspective or reject it, go look at that graph again. When shale ends, 2007 is where we’re going, though even lower because those non shale fields have been emptying further during this past 10-15 yrs.
And that, sports fans, is why Russia is the wrong enemy to have.
Years ago in interview, Sheikh (an honorarium for his work for the KSA) Yamani (d. 2021) said that in retrospect the OPEC embargo (wasn't that a fun ride?) backfired, in that the already-known reserves that had been too expensive to develop came into production quite quickly, and within a decade, thanks to more exploration, the proven reserves worldwide at least doubled (things like oil shale, heavy crudes, oil sands, etc, are somewhat in that total).
And they had no other industries or any labor force trained to do anything (sometimes not even oil field work, relying instead on expensive foreign, mostly western, workers etc). As P.J. O'Rourke wrote later in "Automobile" mag, the entire non-oil GDP of the Gulf states didn't equal Finland's.
Natural resources is always a misnomer -- the only resource is human ingenuity, figuring out what to use whatever is available to accomplish whatever job is at hand.
Sounds like an opportunity to fill the reserve.
Nah. This is wrong.
Alaska came online. It was already known about. It wasn’t until 20 years later that the North Sea came online. Neither source is from shale rock.
Shale arrived about 2009, because of the interest rate crash to make funding of drill and frack economically possible. That expanded SEC defined reserve totals because . . . it was then economically possible. Oil in that rock was already known, but that’s not the entire definition of reserves. The SEC defines that. Other countries don’t have to comply with SEC definitions, but they are usually close.
After my freshman year at UofCincy, I moved to Hollywood to transfer to UCLA.
To live and get in-state tuition, I got an office job at a global oil research company (located at corner of Sunset & LaCienega) who explored/found oil for the major oil companies.
It was a huge education in oil reserves and the sheer propaganda of “news” media.
OPEC the Scum of the Oil Producers
What I said was correct.
How about that, my ping message got deleted.
True. OPEC needs the U.S. dependent on buying their oil. For anyone interested, there's a weekly Rig Count posted by Baker Hughes: Weekly Rig Count
Heads up. The Bible of oil publishes its annual spreadsheet in a couple of weeks. BP (has published it annually each year for about 70) and outsourced it 2 years ago, but only for publication. BP maintains the gathering staff, for a while.
Get your own data. Don’t quote what someone else said.
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