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Lower gas prices could follow from OPEC+ boosting production by 547,000 barrels per day

A group of countries that are part of the OPEC+ alliance of oil-exporting countries has agreed to boost oil production, a move some believe could lower oil and gasoline prices, citing a steady global economic outlook and low oil inventories.

The group met virtually on Sunday and announced that eight of its member countries would increase oil production by 547,000 barrels per day in September.

The countries boosting output, including Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman, had been participating in voluntary production cuts, initially made in November 2023, which were scheduled to be phased out by September 2026. The announcement means the voluntary production cuts will end ahead of schedule.

The move follows an OPEC+ decision in July to boost production by 548,000 barrels per day in August. OPEC said the production adjustments may be paused or reversed as market conditions evolve.

When production increases, oil and gasoline prices may fall. But Brent crude oil, which is considered a global benchmark, has been trading near $70 per barrel, which could be due to a potential loss of Russian oil on the market and a large rise in crude inventories in China, according to research firm Clearview Energy Partners.

“President Trump has not obviously relented from his threat to sanction Russian energy if the Kremlin does not reach a peace deal with Ukraine as of August 7, potentially via “secondary tariffs” on buyers,” Clearview Energy Partners said in an analyst note Sunday.

The eight countries will meet again on Sept. 7, OPEC said in a news release.

This story was originally featured on Fortune.com

© AP Photo/Lisa Leutner, File

The logo of the Organization of the Petroleum Exporting Countries.
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‘Enough is enough’: Boeing sees 3,200 workers go on strike as period of labor strife continues

Saying “enough is enough,” thousands of workers at three Boeing manufacturing plants went on strike overnight less than a year after the company boosted wages to end a separate, 53-day strike by 33,000 aircraft workers.

On Monday, about 3,200 workers at Boeing facilities in St. Louis; St. Charles, Missouri; and Mascoutah, Illinois, voted to reject a modified four-year labor agreement with Boeing, the International Association of Machinists and Aerospace Workers union said Sunday.

In a post on X, the union said: “3,200 highly-skilled IAM Union members at Boeing went on strike at midnight because enough is enough.”

The vote followed members’ rejection last week of an earlier proposal from the troubled aerospace giant, which had included a 20% wage increase over four years.

“IAM District 837 members build the aircraft and defense systems that keep our country safe,” said Sam Cicinelli, Midwest territory general vice president for the union, in a statement. “They deserve nothing less than a contract that keeps their families secure and recognizes their unmatched expertise.”

The union members rejected the latest proposal after a weeklong cooling-off period.

Boeing warned over the weekend that it anticipated the strike after workers rejected its most recent offer that included a 20% wage hike over four years.

“We’re disappointed our employees rejected an offer that featured 40% average wage growth and resolved their primary issue on alternative work schedules,” said Dan Gillian, Boeing Air Dominance vice president and general manager, and senior St. Louis site executive. “We are prepared for a strike and have fully implemented our contingency plan to ensure our non-striking workforce can continue supporting our customers.”

Boeing has been struggling after two of its Boeing 737 Max airplanes crashed, one in Indonesia in 2018 and the other in Ethiopia in 2019, killing 346 people. In June, one of Boeing’s Dreamliner planes, operated by Air India, crashed, killing at least 260 people.

Last week, Boeing reported that its second-quarter revenue had improved and losses had narrowed. The company lost $611 million in the second quarter, compared to a loss of $1.44 billion during the same period last year.

Shares of Boeing Co. slipped less than 1% before the opening bell Monday.

This story was originally featured on Fortune.com

© AP Photo/Lindsey Wasson, File

Boeing workers are on strike again.
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