OPEC+ to raise oil output by 188,000 barrels daily in August

The OPEC+ alliance, led by Saudi Arabia and Russia, has decided to raise its oil production by 188,000 barrels per day starting in August. This marks the fifth consecutive monthly increase, continuing a gradual reversal of voluntary cuts implemented in 2023.

The decision was made during a video conference by ministers from key participating countries, including Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. The move aligns with the group's commitment to market stability and follows a plan initiated over a year ago to gradually reverse a 1.6 million barrel per day cut.

This increase, identical to those in previous months, comes despite recent geopolitical disruptions. While conflicts and blockades had previously hampered oil flow, a de-escalation has allowed shipping to resume through the Strait of Hormuz. This is expected to lead to the effective application of the planned increases for the first time this year.

However, the decision has raised concerns among investors about a potential oversupply in the coming months. Projections from the International Energy Agency (IEA) suggest that global oil supply may exceed demand by approximately 3.8 million barrels per day this year. Consequently, oil prices, which had surged above $100 per barrel, have now returned to pre-conflict levels, with Brent crude closing the week at $72.12.

“

In their collective commitment to support the stability of the oil market, the seven participating countries decided to implement a production adjustment of 188,000 barrels per day, stemming from the additional voluntary reductions announced in April 2023.