OPEC+ plans to increase oil production from August: why it matters
FILE PHOTO: A drone view of a pump jack and drilling rig south of Midland, Texas, U.S. June 11, 2025. REUTERS/Eli Hartman/File Photo
OPEC+ countries plan to agree on another increase in oil production quotas from August 2026. Production is expected to increase by 188,000 barrels per day.
This is reported by Reuters .
According to sources familiar with the negotiations, the decision may be made during the online OPEC+ meeting to be held on July 5. It is expected that from August, oil production quotas will increase by 188,000 barrels per day. This will be a continuation of similar decisions made for June and July.
The seven key OPEC+ members — Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman — have already increased their quotas by almost 800,000 barrels per day from April to July.
At the same time, the actual growth in production was limited due to the war between the United States, Israel and Iran, which led to the closure of the Strait of Hormuz to tankers from a number of Persian Gulf countries. According to OPEC, oil production by the alliance countries fell from 42.77 million barrels per day in February to 33.13 million barrels per day in May. In June, the indicators began to recover due to increased exports, but remain below pre-war levels.
Despite supply disruptions, oil prices have returned to pre-war levels, helped by reduced imports from China, increased exports from producers outside the Middle East, and a record release of strategic oil reserves coordinated by the International Energy Agency.
An additional challenge for OPEC+ was the decision of the United Arab Emirates to withdraw from the alliance, as well as Iraq’s intention to increase its own production quota. After the UAE’s withdrawal, the seven participating countries are gradually canceling the voluntary production reduction of 1.65 million barrels per day agreed in 2023. According to Reuters calculations, if the current pace continues, they will be able to fully return the reduced volumes to the market by the end of September.
Oil prices rose on Wednesday, July 1, amid concerns that talks between the United States and Iran on a final deal to end the war could lead to longer supply disruptions in the strategically important Middle East region.
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