OPEC+ accelerates oil output increase, adds 548,000 barrels
OPEC+ agreed on Saturday to raise output by 548,000 barrels per day in August, further accelerating production increases at its first meeting since oil prices surged — and then fell — following Israeli and U.S. strikes on Iran.
The group, which produces about half the world’s oil, has been cutting output since 2022 to support the market. But it has changed course this year to regain market share and as U.S. President Donald Trump has demanded the group pump more oil to help keep gasoline prices low.
The increased output will come from the group’s eight members — Saudi Arabia, Russia, the UAE, Kuwait, Oman, Iraq, Kazakhstan and Algeria. The eight countries began phasing out their latest cuts of 2.2 million barrels per day in April.
The August increase was a jump from the 411,000 bpd monthly increases agreed by OPEC+ in May, June and July, and the 138,000 bpd in April.
OPEC+ cited a stable global economic outlook and healthy market fundamentals, including low oil inventories, as reasons for releasing more oil.
The acceleration came after some OPEC+ members, such as Kazakhstan and Iraq, pumped above their targets, angering other members who had maintained cuts, sources said.
Kazakhstan’s output grew again last month to match a record high.
OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies led by Russia, is looking to expand its market share amid rising supply from rival producers such as the United States, sources said.
With the August increase, OPEC+ will have released 1.918 million bpd since April, leaving just 280,000 bpd left to be released from the 2.2 million bpd cuts. In addition, OPEC+ allowed the UAE to increase production by 300,000 barrels per day.
The group still has other cuts in place, totaling 3.66 million barrels per day. The eight-member OPEC+ group will meet again on August 3.
Source: Investing.com
