The oil production alliance known as “OPEC+” has decided to significantly increase production in September to ramp up efforts to regain market share. This decision was made during a video conference on Sunday by eight member countries of the alliance. Despite the global oil market facing increasing oversupply, OPEC+ has left room for future policy adjustments.
The eight member countries agreed to increase production by 547,000 barrels per day next month. This signals a faster turnaround from the largest production cut measures implemented by OPEC+ starting in 2023, which aimed to cut daily production by 2.2 million barrels. Additionally, one of the member countries, the UAE, has decided to gradually implement additional production increases.
As the eight OPEC+ member countries held this meeting, the U.S. was increasing pressure on India to stop buying Russian oil as part of efforts to push for a peaceful resolution between Russia and Ukraine. President Trump expressed his hope to see a Russia-Ukraine ceasefire by August 8th.
In a statement following Sunday’s meeting, OPEC+ cited economic health and low oil inventories as reasons for their decision. Despite the alliance’s increased production, oil prices remain high, with Brent crude closing at around $70 per barrel last Friday, up from nearly $58, the 2025 low point in April, partly due to rising seasonal demand.
Amrita Sen, co-founder of energy consultancy firm “Energy Aspects,” noted that with oil prices holding strong at around $70, OPEC+ has gained confidence in market fundamentals. She also pointed out that market structure indicates tight inventories.
Two OPEC+ sources informed Reuters after the meeting on Sunday that the eight member countries plan to hold another meeting on September 7th, where they may consider reimplementing production cuts totaling approximately 1.65 million barrels per day. These cuts, currently in place, are expected to continue until the end of next year.
OPEC+ is a group of 23 countries, including the 13 member countries of the Organization of the Petroleum Exporting Countries (OPEC) and 10 non-OPEC oil-producing countries, with Russia and Kazakhstan being key members.
The group currently accounts for about half of global oil production and has supported oil prices in recent years through production cuts. This year, the organization has shifted its policy to try to reclaim market share, partly in response to Trump’s calls for increased production.
Since April, the group has been gradually increasing production, starting with a modest increase of 138,000 barrels per day, followed by further increases in May, June, and July, with an additional increase of 548,000 barrels per day in August, and a planned increase of 547,000 barrels per day in September.
(Adapted from Reuters)