Eight Opec+ member countries in Saudi -Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman, made the decision to increase oil production on May 31 to increase oil production by 411,000 barrels per day compared to the previous month.
The group explained that the global economic appearance is stable and low oil shares indicate the basics of the healthy market, while the decision of the current decision on ongoing worldwide oil demand increased the expectations that an excess offer can occur on the markets.
In April -oil market report of the Opec, global oil demand for this year was revised. According to the report, the request is expected to increase by around 1.3 million barrels per day compared to the previous year and reach 105 million barrels. The previous estimate was 105 million 50 thousand barrels.
Experts say that if the appearance of demand continues to grow weak and Opec+ countries, product prices can continue to drop below 50 US dollars.
“The prices can fall on the 40 dollar band”
In his assessment of the international data company primary vision Network Energy and Economic Analyst Osama Rizvi, the AA correspondent draws attention to the imbalances of offer systems: “Opec+ members to provide additional barrels for production is a difficult step to understand the market.” he said.
Rizvi emphasized that although a moderate relaxation in the global economy can be seen, it is unclear how the risks are still down and how the markets will reconcile the additional production of the Opec+ group. He said.
Rizvi pointed out that the goal of the Opec+ countries to increase production, do not increase the market share, but to increase this time, but to ensure compliance with the group, “Saudi Arabia has long had a budget deficit.
“The US rock oil sector is under pressure”
The President of the Vienna Energy Research Institute Feydoun Barshli said that low oil prices are a risk for rock oil manufacturers in the United States: “Even large companies cannot continue their activities over $ 50 to $ 60 per barrel. We already have data about the US drilling towers.” he said.
Conspiracy underlined that the market participants should concentrate on a broad picture, and said: “In the following months and in the third quarter of 2026, the US economy and thus global growth can draw a painful picture up to the US elections.” he said.
“Oil demand is directly associated with global economic output. Hence the guidelines of the euro and India, the growth of China and India and the main areas that have to be monitored exactly in terms of the market,” he said.
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