OPEC thinks it will have to pump less oil
The oil cartel expects OPEC to pump less oil this quarter. Non-OPEC countries such as the United States produce more oil, which allows the cartel nations to handle the matter with ease. Oil demand is also lower than previously expected by OPEC. The latter is striking, because the International Energy Agency sees the demand for oil increasing.
Decreased demand and additional production from other countries will mark a turning point at some point this quarter as more oil will be produced than is needed each day to meet demand. Thus, the production of OPEC countries could be more than 1.2 million barrels per day less than what the organization had previously expected.
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Compared to this month, OPEC countries can also close the oil tap a little. So far in July, 570,000 barrels of oil were produced more per day than required in the third quarter, according to OPEC.
At the beginning of this month, the Organization of Petroleum Producing Countries was surprised by plans to increase oil production by 100,000 barrels per day, much less than, for example, requested by US President Joe Biden. The organization then stated that there was only limited additional capacity.
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