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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.
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