LONDON - Opec+ agreed on Saturday to raise production by 548,000 barrels per day (bpd) in August, further accelerating output increases at its first meeting since oil prices jumped — and then retreated — following Israeli and US attacks on Iran.
The group, which pumps about half of the world’s oil, has been curtailing production since 2022 to support the market. But it has reversed course this year to regain market share from non-member countries.
Members have also kept in mind regular prodding from US President Donald Trump for them to pump more to help keep gasoline prices lower.
The output increases come at a time of high uncertainty in the global economy, with sentiment affected by concern about the impact of US tariffs. The International Energy Agency forecasts a global oil surplus later this year, leading to lower prices.
The production boost will come from eight members of the group — Saudi Arabia, Russia, the UAE, Kuwait, Oman, Iraq, Kazakhstan and Algeria. The eight started to unwind their most recent layer of cuts, totalling 2.2 million bpd, in April.
The August increase represents a 33% jump from the monthly increases of 411,000 bpd Opec+ had approved for May, June and July, and 138,000 bpd in April.
Opec+ cited a steady global economic outlook and healthy market fundamentals, including low oil inventories, as reasons for releasing more oil.
The acceleration came after some members, such as Kazakhstan and Iraq, produced above their quotas, angering other members that were sticking to their agreements, sources have said.
Kazakh output returned to growth last month and matched an all-time high.
Opec+, which groups the Organization of the Petroleum Exporting Countries and allies led by Russia, wants to expand market share amid growing supplies from rival producers like the United States, sources have said.
With the August increase, Opec+ will have released 1.92 million bpd since April, which leaves just 280,000 bpd to be released from the 2.2-million bpd cut. On top of that, Opec+ allowed the UAE to increase output by 300,000 bpd.
The group still has in place other layers of cuts amounting to 3.66 million bpd. The eight Opec+ members will next meet on Aug 3.