OPEC Announces Oil Production Increases Amid Record U.S. Output
Source: medianews.com
The Organization of Petroleum Exporting Countries plus Russia (OPEC+) announced Monday after a meeting in Saudi Arabia that crude oil production cuts, which have been a strategic staple for the alliance of small oil-rich nations for the past several years, would be phased out starting in September of this year, resulting in increased oil supply and likely lower gas prices.
OPEC+ released a statement following the meeting announcing that, nominally, production cuts would continue into 2025, but several nations in the alliance, most notably the United Arab Emirates, would be permitted to increase their output of crude oil starting after September.
"These countries will extend their voluntary cuts for 2.2 million barrels a day...until the end of September 2024, and then the 2.2 million barrels a day will be gradually phased out on a monthly basis until the end of September 2025 to support market stability," the OPEC+ statement read following the meeting in Riyadh.
The decision to increase production comes after years of voluntary cuts by OPEC+ to drive up the price of oil, largely contributing to increased gas prices in the United States since the Covid-19 pandemic. During the height of the pandemic, then-President Donald Trump asked OPEC to decrease production after oil prices had cratered, in order to increase prices to benefit U.S. oil companies.
Read more: https://meidasnews.com/news/opec-announces-oil-production-increases-gas-prices-likely-to-fall
After the announcement, crude oil futures dropped dramatically at the opening of markets Monday, from $77 a barrel to $74, a 3% drop, the steepest one-day decline in nearly five months.
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I had a feeling there would be some push back because some of the biggest buyers are looking at cheaper sources (those "sources" now including the U.S., which has been pumping at record levels since last fall) and I know Saudi & Russia need to keep the prices higher to fund their economies, but...
Meanwhile last month, the U.S. released GASOLINE from the reserve (had no idea we had refined product in a reserve although obviously it makes sense to have such) - Biden releasing 1 million barrels of gasoline from Northeast reserve in bid to lower prices at pump
And the administration JUST purchased crude to refill the reserve yesterday - US buys 3 million barrels of oil for Strategic Petroleum Reserve
And that was due to Hurricane/Super Storm Sandy and the aftermath. That was definitely "pulling a rabbit out of the hat". 
Thanks for that link! 
