OPEC+ to Increase Oil Production Again in July

JAKARTA - Seven OPEC+ countries have agreed to increase oil production by 188,000 barrels per day in July. This decision comes at a time when the global energy market is still sensitive to geopolitical tensions and the direction of global oil demand.

Quoted from the Xinhua report, Sunday, June 7, the decision was announced by OPEC after a virtual meeting on Sunday. The meeting was followed by Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman.

The seven countries discussed the global market conditions and the outlook for oil in the future.

This step is the fourth consecutive month of production increase by OPEC+. The decision was still taken even though the United Arab Emirates left OPEC and the wider OPEC+ alliance on May 1.

In its statement, OPEC said the increase in production was based on a "collective commitment to support oil market stability".

With an additional 188,000 barrels per day, OPEC+ seems to want to maintain balance. The market needs supplies, but prices should not fall too deeply. In the oil market, too little supply can cause prices to soar. Too much supply can put pressure on producer prices.

In its report, Xinhua said the seven countries still have full flexibility to adjust production according to market developments.

This means that production policies can still change if prices, demand, or geopolitical conditions move beyond expectations.

OPEC+ is scheduled to meet again on July 5 to make further decisions.