Reuters: OPEC+ plans to increase oil production quotas again in November

OPEC+ plans to approve another increase in oil production by at least 137,000 barrels per day at its meeting on October 5. About writes Reuters, citing informed sources.

Since April of this year, the cartel has abandoned its reduction strategy and has already raised quotas by more than 2.5 million barrels per day, which is about 2.4% of global demand.

This decision was made to regain market share and after pressure from the US president Donald Trump, which demanded lower oil prices.

In total, the OPEC+ cuts reached 5.85 million barrels per day at their peak. They consisted of three elements: voluntary cuts of 2.2 million barrels, an additional 1.65 million barrels from eight countries, and another 2 million barrels from the entire group.

On Sunday, October 5, an online meeting of the eight OPEC+ countries will take place to determine production volumes for November.

By the end of September, the cartel member countries had completely lifted the voluntary restrictions of 2.2 million barrels per day. In October, the second level of cuts – 1.65 million barrels – will be gradually lifted.

Now, in November, a new increase of at least 137,000 barrels per day is expected, similar to the October increase.

Since the beginning of the year, oil prices have fallen from over $80 to the $60-70 per barrel range, but last week rose above $70 after Ukrainian drone attacks on Russia's energy infrastructure, which reduced its exports.

• The International Energy Agency (IEA) predicts that global oil markets will face record surplus due to a slowdown in demand growth and an increase in supply.