SEATTLE (Oil Monster): The OPEC+ alliance which held a virtual meeting on Sunday announced that eight of its member countries will increase their oil production by 547,000 barrels per day in September this year. All the above countries have been part of voluntary production cuts implemented in November 2023.
The eight countries to boost production are Saudi Arabia, Russia, Iraq, United Arab Emirates (UAE), Kuwait, Kazakhstan, Algeria and Oman. These countries will meet again on September 7, 2025, said a news release. Also, the alliance stated that production adjustments may be paused or reversed depending on evolving market conditions.
The move is expected to lower oil and gasoline prices, especially driven by projected stable global economic outlook and lower oil inventories.
The voluntary production cuts were initially planned to be phased out by September next year. The announcement by OPEC+ gives a clear indication that the voluntary production cuts may likely end well ahead of schedule. These eight countries have been reporting increased production since March this year. They had decided to boost production by 548,000 barrels per day in August.
In the meantime, investors expressed concerns over possibilities of further U.S. sanctions against Iran and Russia, which in turn may lead to additional supply disruptions.
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