modest increase<\/a> is nevertheless likely to please US President Donald Trump. He has repeatedly urged Opec+ to increase supply in an effort to cool prices, ease inflation and squeeze Russia\u2019s energy revenues, as part of the west\u2019s efforts to bring Moscow to the negotiating table over Ukraine. Saudi crown prince Mohammed bin Salman is expected to visit Washington in November.<\/p>\nIn March, Opec+ abandoned its previous strategy of withholding millions of barrels a day from the market to support prices.\u00a0November\u2019s production increase is the same size as the one announced by the group for October.<\/p>\n
Despite forecasts that global demand could not absorb much additional oil, the market has remained resilient, bolstered in part by China\u2019s strategic stockpiling.<\/p>\n
While Opec+ members have raised their collective production ceiling by 2.67mn b\/d since April, Brent crude has recovered from the low of $58 a barrel it hit that month and traded for much of the summer between $67 and $70. There have also been few signs that oil is being diverted into storage in the US or Europe, which is the usual indicator of oversupply.\u00a0<\/p>\n
\u200bThe actual output of the group, which manages about 40 per cent of the world\u2019s oil production, has been significantly lower than the headline quotas, however, because of penalties being paid by some members for previous overpumping and the inability of some members to meet their quotas.\u00a0<\/p>\n
In August, for example, Saudi Arabia, Iraq, Kuwait, Oman and the United Arab Emirates together lifted exports by only about 540,000 b\/d \u2014 roughly one-third of their combined quota increase.<\/p>\n
Rystad Energy\u2019s Leon said production since March had only risen by about 60 per cent of the announced targets.<\/p>\n
\u201cGoing forward, production increases are likely to be less, as some countries might not be able to keep increasing production,\u201d he said. <\/p>\n","protected":false},"excerpt":{"rendered":"Stay informed with free updates Simply sign up to the Oil myFT Digest — delivered directly to your…\n","protected":false},"author":3,"featured_media":280190,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[64,135,67,132,68],"class_list":{"0":"post-280189","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-markets","10":"tag-united-states","11":"tag-unitedstates","12":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115323363856376577","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/280189","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=280189"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/280189\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/280190"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=280189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=280189"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=280189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}