Riyadh intends to regain oil market share from US shale gas producers, who are facing higher production costs. This opinion was expressed by Francisco Blanch, head of commodity research at Bank of America, in an interview with Bloomberg Television.
“This price war will not be short-term and sharp, but rather it will be long and gradual“, Blanch noted.
According to him, the change in strategy is already bearing fruit: the latest Baker Hughes data on oil production in the United States shows the lowest number of drilling rigs in the last 4 years.
On May 31, 8 OPEC+ countries participating in agreements to voluntarily reduce oil production announced their decision to increase the production ceiling by another 411,000 barrels per day in July, which is in line with the initial three-month plan to increase production. The meeting of the eight OPEC+ countries, which will discuss the oil production plan for August, is scheduled for July 6.