At its first meeting since oil prices surged and then fell in response to US and Israeli strikes on Iran, OPEC+ decided on Saturday to boost production by 548,000 barrels per day in August, marking a further acceleration of supply increases.
Since 2022, the company, which supplies almost half of the world’s oil, has been reducing output to help the market. However, it has changed its strategy this year in an effort to reclaim market dominance, and US President Donald Trump has called on the company to increase pumping in order to help keep fuel prices low.
The eight countries in the group—Saudi Arabia, Russia, the United Arab Emirates, Kuwait, Oman, Iraq, Kazakhstan, and Algeria—will contribute to the increase in output. In April, the eight began to undo their most recent round of 2.2 million bpd restrictions.
The August rise comes after OPEC+ authorised monthly increases of 138,000 bpd in April and 411,000 bpd in May, June, and July. As justifications for increasing oil production, OPEC+ pointed to a stable global economy and sound market fundamentals, such as low oil stockpiles.
Following the actions of certain OPEC+ countries, such as Kazakhstan and Iraq, which exceeded their production objectives, the acceleration occurred. Last month, Kazakh output reached a record high and resumed its upward trajectory.
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