OPEC+ Production Increase Aligns with Seasonal Summer Demand Surge: Expert SaysMuscat, 6 Jul (ONA) —- The OPEC+ alliance’s agreement to gradually raise oil production by 548,000 barrels per day starting next August reflects the group’s effort to strike a delicate balance between supporting market stability and avoiding price pressures, particularly amid uncertainties surrounding the global economic outlook. Ali Abdullah Al Riyami, an energy sector expert, explained that the impact of this increase largely hinges on market response. However, the timing of the announcement appears precise, especially given the need to accelerate the phasing out of voluntary cuts before the fourth quarter of this year—a period expected to see a significant supply surplus that may extend into the first quarter of next year. He noted that hopes remain pinned on the market reacting positively to this move, with the announcement not triggering a negative effect on oil prices at the start of the week. In a statement to the Oman News Agency (ONA), Al Riyami described the increase as a carefully calculated risk, supported by several positive factors in the market environment. These include heightened seasonal demand during the summer months, growing optimism about a potential U.S.-China tariff agreement, and the continued weakness of the U.S. dollar—which could mitigate the impact of price declines and enhance the competitiveness of dollar-priced crude. He added that the eight OPEC+ countries will continue pumping the remaining volumes from August through September of this year as part of a plan to fully restore the collectively withheld volumes—totaling over 3 million barrels per day—by the end of 2027. Al Riyami pointed out that the effect of the production hikes implemented over the past three months has been limited on prices due to overlapping political and commercial factors, including geopolitical tensions, uncertainty over tariffs, and unclear projections for global economic growth. The energy expert clarified that Oman’s required crude oil production after this new increase—effective next August—will stand at 792,000 barrels per day, alongside approximately 200,000 barrels of condensates. With gas production factored in, the total output of crude and condensates will reach around 1 million barrels per day. He stated that the impact of the increase will become apparent at the start of trading tomorrow “Monday,” though it is expected to have no significant effect on oil prices and may remain limited. He emphasized that supply-demand dynamics and other fundamental factors drive the market and justify this decision. “The demand for oil is high during the summer period,” Al-Riyami explained, “but concerns arise in the last quarter of this year and the first quarter of next, when demand typically weakens, potentially leading to price volatility or declines.” —— Ends/AH