OPEC+ Confirms August Oil Plan: What It Means for Prices and Supply
The group of oil-producing countries called OPEC+ (which includes OPEC and other countries like Russia) met recently and decided to stick with their current plan to slowly increase the amount of oil they produce. This decision affects the global oil supply and can also impact gas prices.
Currently, OPEC+ is being cautious about the amount of oil it releases into the market. They don’t want to produce too much too fast because it could make oil prices drop. At the same time, they want to make sure there’s enough oil for countries that need it.
In August, they’ll slightly increase oil production, but most of the countries in the group will still keep some of their production cuts in place. These cuts were originally made during the pandemic, when demand for oil plummeted.
Saudi Arabia, Russia, Iraq, and other countries are part of this group. Each country has agreed to produce a certain amount of oil to maintain stable prices. OPEC+ will meet again soon to check on the market and make changes if necessary.
The primary goal is to maintain stable oil prices and ensure that both oil-producing countries and the global economy remain balanced.
Iraq's operating budget is basically funded by oil revenue. When the amount of oil allowed for export decreases, so does Iraq's oil revenue.
