Key Opec members send ‘big message’ with higher oil production

Eight key members of the Opec alliance said Sunday they have agreed to again boost oil production, in a strategy analysts saw as a bid to gain a bigger market share of crude sales.

Oil ministers in the V8 grouping – comprising Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman – decided to increase production by 137,000 barrels a day (bpd) from next month, they said in a statement.

Those countries had already increased production by 2.2 million bpd in recent months.

In their statement issued after an online meeting on Sunday, they said that the new incoming cycle could see up to an extra 1.65 million bpd eventually coming onto the market.

“Opec caught the market off guard today – instead of pausing, the group signalled ambition with a production hike. The barrels may be small, but the message is big,” said Jorge Leon, an analyst at Rystad Energy.

“Opec is prioritising market share even if it risks softer prices,” he said.