2 June 2025 | Oil

Saudi Arabia tightens control over OPEC+ by sharply increasing oil output

Saudi Arabia tightens control over OPEC+ by sharply increasing oil output

Saudi Arabia secured an agreement from all OPEC+ countries for a third consecutive significant increase in oil production, despite resistance from Russia and its allies. The kingdom decided to lower energy prices to influence quota violators and regain its share of the global market. According to Bloomberg, this led to oil prices falling to a four-year low under $60 per barrel.

The alliance began changing its previous production cut policy on April 3. On that day, Saudi Arabia and other OPEC+ countries announced an increase in May's crude supplies by 411,000 barrels per day, despite falling demand in China. This is three times more than the previously planned volume.

According to some Bloomberg sources, this decision was prompted by a request from Donald Trump to lower oil prices. Last month, the US president visited Persian Gulf countries and concluded several multibillion-dollar deals. Some believe that Saudi Arabia is seeking to influence Kazakhstan and Iran, who are violating quotas. Another opinion is that Riyadh wants to regain its lost market position, which has been taken over by American shale companies, the news agency reports.

Elena Dorokhina MarketCheese
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