1407 ET - The decision by eight OPEC+ countries to speed up the unwinding of 2.2 million barrels a day in voluntary output cuts was neither a policy pivot nor an effort to appease the Trump administration with lower oil prices, says Benjamin Hoff of Societe Generale. Rather, the group is returning output at the time of year with the strongest demand, which "allows barrels to re-enter the market without immediately overwhelming balances, reducing the risk of price collapse." The additional cuts were a successful effort to tighten post-Covid balances, Hoff says in a note. "The question was always when, not if, these barrels would return." The rollback also allows room for cutting again if economic or demand conditions deteriorate, and sets up "a cleaner conversation," on the future of cuts made prior to the 2.2 million b/d, which remain in place, he adds. (anthony.harrup@wsj.com)

(END) Dow Jones Newswires

July 22, 2025 14:07 ET (18:07 GMT)

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