Traders expect fourth consecutive hike in OPEC+ oil production

Oil traders expect OPEC+ to agree on a fourth consecutive boost in oil production at its meeting on Sunday, with the projected increase of 411,000 barrels per day taking effect in August. The move comes amid Saudi Arabia seeking to regain lost market share and respond to strengthening competition from US shale drillers. 

OPEC+ has been raising its oil output despite weak demand and oversupply in the global market. As a result, Brent crude prices dropped to $68 per barrel, down 9% from the start of the year. Bloomberg believes further production hikes could add to oversupply and continue to weigh on oil prices. 

According to analysts at Rystad Energy, including former OPEC Secretariat’s official Jorge Leon, the cartel expects to regain market share while keeping crude prices above $60 per barrel. They believe the majority of the alliance's members will support another boost, including Russia, which previously opposed such moves.