OPEC+ Increases Oil Production Again, Additional 188 Thousand Barrels Effective September

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

OPEC+ has again increased oil production. Seven countries in the group agreed to raise the production limit in September by 188,000 barrels per day compared to the August level.

Xinhua quoted Sunday, August 2, reported that the decision was announced after an OPEC+ virtual meeting on Sunday, August 2. The meeting was followed by Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman.

This increase is the sixth consecutive month that OPEC+ has increased oil production.

OPEC+ is a group consisting of member countries of the Organization of the Petroleum Exporting Countries or OPEC and its allies.

In a statement after the meeting, the seven participating countries said the decision to increase production was taken as part of a joint commitment to support oil market stability.

They also reviewed the global market conditions and prospects before agreeing to the additional production.

The September production increase came from voluntary cuts previously announced in April 2023.

The voluntary cut of 1.65 million barrels per day was first announced in April 2023. The policy was then extended until the end of 2026.

Barrels per day or bpd is a unit to measure the daily production volume of oil. One barrel is equivalent to about 159 liters.

According to the OPEC+ statement, the seven countries will adjust production flexibly by looking at the development of market conditions.

They are scheduled to meet again on September 6 to determine the production level in October.