OPEC+ members agree to larger-than-expected oil production hike in August
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Eight OPEC+ producers agreed to lift crude output by 548,000 barrels per day in August, exceeding the anticipated 411,000 barrels per day rate.
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July 5, 2025
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An eight-nation subset of the oil-ducing OPEC+ alliance agreed to lift duction by a larger-than-expected 548,000 barrels per day in August
The group comprises heavyweight ducers Russia and Saudi Arabia, alongside Algeria, Iraq, Kazakhstan, Kuwait, Oman and the United Arab Emirates
These countries have been unwinding 2. 2 million barrels per day of voluntary duction cuts, which are separate from the wider OPEC+ strategy
The OPEC logo is displayed on a mobile phone screen in front of a computer screen displaying OPEC icons in Ankara, Turkey, on June 25, 2024
Anadolu | Anadolu | Getty ImagesEight oil-ducing nations of the OPEC+ alliance agreed on Saturday to increase their collective crude duction by 548,000 barrels per day, as they continue to unwind a set of voluntary supply cuts
This subset of the alliance — comprising heavyweight ducers Russia and Saudi Arabia, alongside Algeria, Iraq, Kazakhstan, Kuwait, Oman and the United Arab Emirates — met digitally earlier in the day
They had been expected to increase their output by a smaller 411,000 barrels per day
In a statement, the OPEC Secretariat attributed the countries' decision to raise August daily output by 548,000 barrels to "a steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories. "The eight ducers have been implementing two sets of voluntary duction cuts outside of the broader OPEC+ coalition's formal policy
One, totaling 1. 66 million barrels per day, stays in effect until the end of next year
Under the second strategy, the countries reduced their duction by an additional 2. 2 million barrels per day until the end of the first quarter
They initially set out to boost their duction by 137,000 barrels per day every month until September 2026, but only sustained that pace in April
The group then tripled the hike to 411,000 barrels per day in each of May, June, and July — and is further accelerating the pace of their increases in August
Oil prices were briefly boosted in recent weeks by the seasonal summer spike in demand and the 12-day war between Israel and Iran, which threatened both Tehran's supplies and raised concerns over potential disruptions of supplies transported through the key Strait of Hormuz
At the end of the Friday session, oil futures settled at $68. 30 per barrel for the September-expiration Ice Brent contract and at $66. 50 per barrel for front month-August Nymex U
West Texas Intermediate crude.
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