OPEC+ decided to increase oil production: reasons given
Фото: Reuters
OPEC+ announced a modest increase in oil production from November by 137,000 barrels per day. The decision was prompted by concerns about a global glut and the need to maintain a balance between price stability and regaining market share from competitors such as US shale companies.
This is reported by Reuters .
The international group OPEC+, which brings together oil-exporting countries and Russia, decided to increase daily production by 137,000 barrels, which corresponds to the same moderate growth as in October.
Overall, OPEC+ increased production by more than 2.7 million barrels per day in 2025, which is approximately 2.5% of global oil demand.
The move is part of a strategy after years of cuts to regain market share in competition with US shale producers, with analysts fearing a potential glut in the fourth quarter of 2025 and into 2026 due to slowing demand and rising US production.
Brent crude traded below $65 a barrel on Friday, well below this year’s highs of $82 but above the $60 mark in May.
Before the OPEC+ meeting, Russia and Saudi Arabia were at odds. Russia advocated a moderate increase in production so as not to put pressure on prices and because of restrictions related to sanctions over the war in Ukraine. Saudi Arabia insisted on a much larger increase – from 274,000 to 548,000 barrels per day, as it has spare capacity and seeks to regain market share more quickly.
OPEC said the global economy has a stable outlook and the oil market remains healthy due to low inventories. Experts noted that the organization has been careful to balance market stability with share recovery, as excess supply poses risks to prices.
Total OPEC+ production cuts currently peaked in March 2023 at 5.85 million barrels per day. Some of these cuts have already begun to be phased out: 2.2 million barrels per day were reinstated in late September, and the next layer of cuts of 1.65 million barrels per day began to be phased out in October, with monthly increases of 137,000 barrels per day. The next OPEC+ meeting is scheduled for November 2.
As previously reported, oil prices fell sharply on October 3 , falling nearly 2% to their lowest levels since the beginning of the summer. Brent crude fell to $64.11 per barrel, while WTI crude fell to $60.48.
As a reminder, Indian officials have asked the Trump administration to allow the purchase of oil from sanctioned Iran and Venezuela amid the suspension of supplies from Russia.
As reported, the European Union is considering trade measures aimed at restricting imports of Russian oil through the Druzhba gas pipeline, which is used by Hungary and Slovakia.
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