OPEC+ has decided to increase oil production by 548,000 barrels per day (bpd) in August. The move comes after recent market disruptions caused by U.S. and Israeli attacks on Iran. This is OPEC+’s first meeting since those events and reflects a major shift in their strategy.
The group, which includes Saudi Arabia, Russia, and six others, had started reducing oil supply in 2022 to support prices. However, rising global demand and pressure from U.S. President Donald Trump to lower fuel prices have led them to increase output again. These eight countries had already begun easing previous cuts in April.
Compared to earlier months, this is a faster production hike. In May, June, and July, OPEC+ increased output by 411,000 bpd per month. In April, the increase was just 138,000 bpd. Now, the group has released 1.918 million bpd since April, with only 280,000 bpd left from their previous cut of 2.2 million bpd.
The decision follows growing tensions among OPEC+ members. Countries like Kazakhstan and Iraq were producing more than allowed, frustrating others sticking to agreed limits. Meanwhile, the UAE has been allowed to raise production by 300,000 bpd separately.
OPEC+ is responding to a stable global economy and strong oil demand, especially as U.S. production also rises. The group’s next meeting is scheduled for August 3, where they may decide on more increases or further changes based on market needs.