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OPEC’s market sway challenged as oil prices stay firm despite supply hike
OPEC is boosting oil production in a bid to reclaim market share, but prices remain unexpectedly strong, revealing the cartel’s waning ability to steer global markets.
Despite reversing earlier cuts, OPEC’s efforts have been offset by intensifying geopolitical tensions, including US-China trade negotiations, sanctions on Russia, Iran’s nuclear ambitions, and Russia’s war in Ukraine.
These external factors, combined with a sharp drop in major new non-OPEC oil discoveries, have kept global supply tight and prices buoyant.
While OPEC is trying to reassert unity and dismisses concerns over peak demand, the group is now playing a long game as it banks on continued global consumption growth and limited rival supply.
Analysts say OPEC’s traditional clout is being eclipsed by broader geopolitical and structural forces shaping the oil market.
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