Saudi Arabia plans to force OPEC+ production hike starting August

According to Bloomberg, Saudi Arabia plans to push OPEC+ to increase oil production by 411,000 barrels per day in August and potentially September. Riyadh aims to boost output as soon as possible to take advantage of peak summer demand in the Northern Hemisphere.

The alliance members agreed to increase crude output by 411,000 barrels per day in May, June, and July. However, during the latest meeting, disagreements emerged among the group's representatives regarding future strategy.

Previously, Saudi Arabia maintained oil prices through production cuts. Now, Riyadh intends to drive fuel prices down. In April, crude fell below $60 per barrel after OPEC+ unexpectedly tripled its planned production increase.

The supply hikes helps central banks grappling with stubborn inflation. However, Bloomberg notes this development creates financial risks for oil producers. In May, Russian government revenues from crude sales plummeted to their lowest level in nearly two years following the sharp decline in fuel prices.