OPEC+ to Add 188,000 Barrels per Day of Oil Production Starting August

OPEC headquarters in Vienna, Austria. (Photo: Wikimedia Commons - Vincent Eisfeld / nordhausen)

OPEC+ has again raised the oil production limit starting August. The group of oil producers agreed to increase production by 188,000 barrels per day compared to the July level.

Quoted from Xinhua, Monday, July 6, the decision was made in an OPEC+ virtual meeting on Sunday, July 5. The meeting was attended by Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman.

OPEC+ is a group of oil producing countries consisting of OPEC members and a number of allies. This latest decision is the fifth consecutive production increase by OPEC+.

In their statement, the seven participating countries said that the production adjustment was carried out as part of a joint commitment to support oil market stability. The increase of 188,000 barrels per day came from additional voluntary adjustments announced in April 2023.

Voluntary adjustments refer to additional production policies carried out by some OPEC+ members outside the main arrangement. The voluntary production cut of 1.65 million barrels per day was first announced in April 2023 and then extended until the end of 2026.

The increase in production was still decided even though the United Arab Emirates left OPEC and the wider OPEC+ alliance on May 1.

According to the statement, the seven countries will adjust production flexibly according to the development of market conditions. They are scheduled to meet again on August 2 to make decisions regarding September production.