Eight oil-producing nations of the OPEC+ alliance agreed on Saturday to increase their collective crude production by 548,000 barrels per day, as they continue to unwind a set of voluntary supply cuts.
They had been expected to increase their output by a smaller 411,000 barrels per day.
The eight producers have been implementing two sets of voluntary production cuts outside of the broader OPEC+ coalition’s formal policy.
They initially set out to boost their production by 137,000 barrels per day every month until September 2026, but only sustained that pace in April.
The group then tripled the hike to 411,000 barrels per day in each of May, June, and July — and is further accelerating the pace of their increases in August.
As they work to reverse a series of voluntary supply cuts, eight oil-producing countries in the OPEC+ alliance decided on Saturday to boost their combined crude production by 548,000 barrels per day.
This alliance’s subset, which includes major producers Saudi Arabia and Russia as well as Algeria, Iraq, Kazakhstan, Kuwait, Oman, and the United Arab Emirates, convened virtually earlier in the day. It was anticipated that they would boost production by a more modest 411,000 barrels per day.
The countries’ decision to increase August daily output by 548,000 barrels was credited by the OPEC Secretariat in a statement to “a steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories.”. “..”.
Apart from the official policy of the larger OPEC+ coalition, the eight producers have been putting two sets of voluntary production cuts into effect.
One remains in force until the end of the following year and amounts to 1 point 66 million barrels per day.
Up until the end of the first quarter, the nations’ production was cut by an extra 2.2 million barrels per day under the second strategy.
Their initial goal was to increase production by 137,000 barrels per day each month until September 2026, but they only maintained that pace in April. In May, June, and July, the group increased the hike by threefold to 411,000 barrels per day, and in August, they are speeding up their increases even more.
In recent weeks, the 12-day war between Israel and Iran, which threatened Tehran’s supplies and sparked worries about possible disruptions of supplies transported through the crucial Strait of Hormuz, and the seasonal summer spike in demand temporarily raised oil prices.
