Opec+ is switching strategy to defend its market share

Dwindling Opec market share has simply become too painful and contentious to sustain. — Reuters

OIL futures prices have fallen to the lowest level for four months and calendar spreads have slumped after the Organisation of the Petroleum Exporting Countries and allies (Opec+) ministers signalled their intention to start increasing production from the fourth quarter of 2024.

Front-month Brent futures closed at US$78 per barrel on June 3, the first day of trading following the Opec+ ministerial meeting on June 2, up just US$2 per barrel compared with the same time last year.