Cheaper refueling
The OPEC+ oil cartel will increase oil production significantly more than expected next month. OPEC+ was already working with three times higher oil production than originally planned. According to market experts, an oil surplus is threatening later this year, which could lead to lower prices at the pump.
The oil cartel is increasing production by 548,000 barrels per day. In previous months, production was increased by 411,000 barrels per day.
OPEC+ is led by Saudi Arabia and Russia. The Saudis would like to lower oil prices with the higher production in order to appease US President Donald Trump. He has regularly asked for higher production from OPEC+ to lower fuel prices. That is one of Trump’s election promises. Russia and Saudi Arabia also want to gain market share at the expense of American shale oil producers. Due to lower prices, these companies get less return from oil extraction, which also makes investments in new fields less attractive.
The price reduction is already visible at Dutch gas stations. According to UnitedConsumers, the recommended price for a liter of E10 gasoline is now on average €2.12. That was €2.15 on June 24. The recommended price for diesel is €1.88. That was €1.92 on June 24.