OPEC+ meeting scheduled for Sunday, Saudi Arabia pushes for accelerated production increase, vowing to reclaim market share!
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OPEC+ alliance leader Saudi Arabia is pushing the group to consider restoring more oil production to recapture market share.
According to media reports on Friday, informed sources revealed that OPEC+ member countries will hold a video conference on Sunday to discuss what to do with the currently suspended 1.66 million barrels per day of supply. Saudi Arabia hopes OPEC+ will speed up the next oil production increase.
As global demand weakens, OPEC+’s move to increase production has further pressured oil prices. After the news was released, Brent crude futures fell as much as 2.1%, with a cumulative decline of nearly 10% so far this year.
Crown Prince Mohammed bin Salman of Saudi Arabia will visit Washington in November to meet President Trump, who has been calling for lower fuel prices.
Saudi-Led Push to Increase Production to Recapture Market Share
According to reports, Saudi Arabia is pushing OPEC+ to increase production ahead of the originally planned resumption of supply at the end of next year. Informed sources said that Saudi Arabia hopes to offset the impact of falling prices and recapture market share previously ceded to competitors by increasing production.
OPEC representatives said that Saudi Arabia is eager to regain sales volume given up to competitors such as U.S. shale oil producers. In the past five months, the alliance has accelerated the restoration of a batch of previously halted production capacity and is now facing the decision of what to do with the remaining 1.66 million barrels per day of paused supply.
Livia Gallarati, global crude director at Energy Aspects Ltd., said in a media interview: “The latest messages we are getting from the group indicate they are very seriously considering lifting the last batch of suspended supply sooner rather than later.”
Market Impact and Price Pressure
Further increases in production will threaten to amplify the supply surplus forecasted by agencies such as the International Energy Agency for the fourth quarter, putting additional downward pressure on oil prices. Although there are market concerns about the inability to absorb additional oil, since OPEC+ began restoring 2.2 million barrels per day of halted supply, the market has not collapsed.
However, as oil supply continues to expand, oil prices may weaken further.
According to a previous article by Wallstreetcn, Goldman Sachs expects that non-OPEC oil supply growth (excluding the U.S.) will lead to a global market surplus of 1.8 million barrels per day in 2026, eventually pushing Brent prices down to a low of $50 per barrel by the end of 2026.
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