Actual increase in OPEC+ oil supply may be less than announced

According to Bloomberg, OPEC+ is likely to announce another oil supply increase this Saturday, but the actual volume may fall short of expectations.

As the agency notes, eight members have committed to boosting crude production by 960,000 barrels per day by June, compared to March levels. Analysts forecast that the group will agree to raise this volume to 1.37 million barrels per day. However, experts suggest the actual increase could drop to 1.1 million barrels per day by July, or even to 972,000 in another scenario.

Meanwhile, not all additional oil will reach global markets, Bloomberg reports. During the hot summer months in the Middle East, domestic demand spikes for electricity and water desalination.

Last year, Saudi Arabia's direct crude consumption rose by more than 460,000 barrels per day between March and July, according to the Joint Organizations Data Initiative. If a similar increase occurs this year, it could absorb over 80% of Riyadh's planned production boost.