OPEC+ members have reached an agreement to increase their combined crude oil output. They will pump an additional 548,000 barrels per day higher than previously expected. The decision came during a digital meeting held earlier in the day, where the coalition discussed ongoing production strategies amidst fluctuating global oil prices and geopolitical tensions.
This increase is a notable change from the expected increase of just 411,000 barrels per day. The coalition, which includes major oil-producing nations such as Russia and Saudi Arabia, had already tripled its output increases in May, June, and July. The great new agreement very dramatically speeds up production rates. OPEC+ has agreed limited output increases of 137,000 bpd per month through a calendar of September 2026.
OPEC+ comprises eight key oil-producing nations: Algeria, Iraq, Kazakhstan, Kuwait, Oman, the United Arab Emirates, along with Russia and Saudi Arabia. The coalition’s bold leadership has followed through by adopting two rounds of voluntary production cutbacks. This great new step comes on top of their remarkable joint work so far. They are offsetting this with a production cut of 2.2 million barrels per day. This reduction will be in place through the end of the first quarter of next year. One round of voluntary reductions — 1.66 million bpd — is still in effect until the end of 2024.
The recent geopolitical climate has intensified concerns about oil supply disruptions. This worry has been especially aimed at the current hot war between Israel and Iran and what that may mean for the Strait of Hormuz. A now seasonal peak demand in summer has made matters worse by increasing oil price volatility. The Ice Brent contract settled at $68.30 per barrel for September delivery at the end of the week last week. At the same time, the front month August Nymex WTI settled at $66.50 per barrel.
The OPEC Secretariat noted that the decision to increase production aligns with “a steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories.” This assertion highlights the coalition’s dedication to providing what the market wants while addressing the growing outside pressure to do otherwise.