Bank of America's commodity research director said OPEC+'s plan to increase oil production is part of Saudi Arabia's strategy, which aims to start a long but moderate price war to regain market share. The Organization of Oil Producers, led by Saudi Arabia, agreed last month to increase oil production for the third consecutive month. These measures to increase production have reversed supply restrictions aimed at supporting oil prices over the past few years. “This will not be a short and intense price war; it will be a long but moderate price war,” said Francisco Blanch of Bank of America. He believes this reflects an intention to seize market share from US shale oil. Shale oil is in relatively good health but faces higher production costs.

Bank of America's commodity research director said OPEC+'s plan to increase oil production is part of Saudi Arabia's strategy, which aims to start a long but moderate price war to regain market share. The Organization of Oil Producers, led by Saudi Arabia, agreed last month to increase oil production for the third consecutive month. These measures to increase production have reversed supply restrictions aimed at supporting oil prices over the past few years. “This will not be a short and intense price war; it will be a long but moderate price war,” said Francisco Blanch of Bank of America. He believes this reflects an intention to seize market share from US shale oil. Shale oil is in relatively good health but faces higher production costs.