๐ข๏ธ Why OPEC+ Is Accelerating Oil Production
๐ As Prices Tank & Tariffs Hammer Global Markets
๐ด The oil world is shaken as global trade tensions spike and oil prices dip dramatically.
๐ President Trumpโs sweeping tariffs are triggering a domino effect across global markets โ impacting energy, trade, and investor confidence.
Citing: Tariff escalation & higher OPEC+ supply
๐ก S&P Global warns:
โ Oil demand growth could drop by 500,000 barrels/day
โ Recession fears push volatility higher
๐บ JPMorgan raises global recession odds to 60%
๐ฅ OPEC+ Shocks Markets With Output Surge
โ OPEC+ triples planned output increase
From ~140,000 โ 411,000 barrels/day
Key players: #Saudi Arabia, #Russia, #UAE, #Iraq, #Oman, #Kazakhstan, #Kuwait, #Algeria
๐ป Oil prices dropped 6% after announcement
๐ง Why the Sudden Surge?
๐ OPECโs View:
โ Still bullish on long-term demand
โ Believes fundamentals remain healthy
๐ Political Pressure?
โ Many analysts suggest:
"Trumpโs pressure on oil prices is real"
โ Boosted output = reduced pump prices = inflation offset
๐ Market Share Play:
โ This move also signals dominance
โ Especially aimed at non-compliant members like Iraq, Kazakhstan, & even Russia
๐ฃ Reminder:
OPEC has used market flooding before โ like in 2020, when oil crashed to $15 to regain control over Russia
๐ฎ What's Next?
๐ OPEC+ expects summer demand rebound
๐น๏ธ Strategy is flexible, based on evolving tariffs & trade conditions
๐จ If oil falls further (into $60s), OPEC+ may pause or reverse hikes
๐ฌ Analysts say:
โAll it takes is one phone call to change the path.โ