OPEC+ agreed yesterday to raise oil production by 547,000 barrels per day for September, the latest in a series of accelerated output hikes to regain market share, as concerns mount over potential supply disruptions linked to Russia.
The move marks a full and early reversal of Opec+’s largest tranche of output cuts plus a separate increase in output for the UAE amounting to about 2.5 million bpd, or about 2.4 per cent of world demand.
Eight Opec+ members held a brief virtual meeting, amid increasing US pressure on India to halt Russian oil purchases – part of Washington’s efforts to bring Moscow to the negotiating table for a peace deal with Ukraine. President Donald Trump said he wants this by August 8.
In a statement following the meeting, Opec+ cited a healthy economy and low stocks as reasons behind its decision.
Oil prices have remained elevated even as Opec+ has raised output, with Brent crude closing near $70 a barrel on Friday, up from a 2025 low of near $58 in April, supported in part by rising seasonal demand.
“Given fairly strong oil prices at around $70, it does give Opec+ some confidence about market fundamentals,” said Amrita Sen, co-founder of Energy Aspects, adding that the market structure was also indicating tight stocks.
The eight countries are scheduled to meet again on September 7, when they may consider reinstating another layer of output cuts totalling around 1.65m bpd, two Opec+ sources said following yesterday’s meeting. Those cuts are currently in place until the end of next year.
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