Major OPEC+ Oil Production Expansion to Bring Little Benefit at the Pump

Since this month, OPEC+ countries have been bringing an additional 411,000 barrels of oil per day to the market, with similar steps to follow in June and July. Oil and gas expert Ronald de Zoete calls it mainly an administrative trick by the oil cartel. 'They are aligning the paper book with reality, but I do not expect it to have much impact on oil prices in the long term.'

The actual oil exports from OPEC+ countries have remained practically unchanged since February, with Saudi Arabia even bringing 5% less to the market. The oil market already knew that countries like Russia, Iraq, Kuwait, and Algeria would open the tap a bit further, but it was still a surprise that the production increase turned out three times as strong as expected. This pushed the oil price, partly due to the effects of trade unrest on the global economy, to a four-year low of just under $60 per barrel.