OPEC+ countries to boost oil production by 547,000 barrels per day
The group met virtually on Sunday (Aug 3) 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, which were scheduled to be phased out by September 2026. The announcement means the voluntary production cuts will end ahead of schedule.
Kuwait's Oil Minister Tariq Al-Roumi praised the OPEC+ decision to raise oil production, saying it reflected coordination aimed at ensuring oil market stability.
In a statement on Sunday, Al-Roumi said the decision was based on "a thorough analysis of market data, including production, inventories, and future expectations".
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.
POTENTIAL LOSS OF RUSSIAN OIL A FACTOR
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.
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