Saudis warn of more supply unless Opec+ cheats fall in line
[CAIRO] The Organization of the Petroleum Exporting Countries and its allies (Opec+) leader Saudi Arabia warned the group's overproducing members it could amplify a historic shift in policy and deliver further production increases unless they fall in line, delegates said.
Riyadh steered the Organization of the Petroleum Exporting Countries on Saturday (May 3) to agree on a surge of 411,000 barrels a day in June, the second month in a row, in a bid to punish quota cheats such as Kazakhstan and Iraq.
The kingdom is weighing returning the remainder of the group's halted 2.2 million barrels in similar increments unless the countries fall in line, according to the delegates, who asked not to be identified as the talks are private. The Saudi threat was reported earlier by Reuters.
The threat suggests the kingdom is prepared to go even further in its sharp break with years of policy aimed at supporting prices as it tries to instil better discipline within the cartel.
Coinciding with US President Donald Trump's trade war, the supply hikes are taking a brutal toll on oil prices, which have sunk to a four-year low near US$60 a barrel in London.
Opec+ had originally planned to revive 2.2 million barrels a day of halted production in modest monthly slivers till to late 2026.
Instead, it has approved the return of almost half that amount in just a few months, and now appears to be considering restarting the remainder at an equally brisk clip. BLOOMBERG
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