The Globe and Mail reports in its Monday, June 2, edition that OPEC+ stuck to its guns on Saturday with another big increase of 411,000 barrels a day for July. A Reuters dispatch to The Globe reports that having spent years curbing production -- more than five million barrels a day (b/d) or 5 per cent of world demand -- eight OPEC+ countries made a modest output increase in April before tripling it for May, June and now July. They are spurring production despite the extra supply weighing on crude prices as group leaders Saudi Arabia and Russia seek to win back market share as well as punish overproducing allies such as Iraq and Kazakhstan. Onyx Capital Group analyst Harry Tchilinguirian says: "Today s decision only goes to show that market share is on top of the agenda. If price will not get you the revenues you want, they are hoping that volume will." The eight countries held an on-line meeting on Saturday to set July production. On Friday, unnamed sources familiar with OPEC+ talks had said they could discuss an even larger hike.
In a statement OPEC+ cited a "steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories" as its reasoning for the July increase.
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