OPEC+ Announces Another Significant Oil Production Adjustment for July

LONDON/MOSCOW, May 31 (Reuters) – The Organization of the Petroleum Exporting Countries and its allies (OPEC+) has announced a significant increase in oil production, approving an additional 411,000 barrels per day for July. This decision aims to regain market share while addressing production imbalances among certain member states, notably Iraq and Kazakhstan.

This latest adjustment follows a series of production increases initiated in April, cumulatively amounting to 1.37 million barrels per day out of a targeted 2.2 million barrels per day intended to re-enter the market. Despite the potential downward pressure on crude oil prices resulting from this additional supply, OPEC+ officials—particularly those from Saudi Arabia and Russia—emphasize the strategic importance of maintaining and expanding market share over short-term price stabilization.

The coalition cited a stable global economic outlook and resilient market fundamentals as key factors supporting the decision to raise output in July. While some member countries, such as Algeria, advocated for a pause in production hikes, the expectation of rising seasonal demand during the summer months ultimately influenced the group’s consensus.

In April, oil prices declined to a four-year low, falling below $60 per barrel. This was attributed to OPEC+’s announcement of a threefold increase in output for May, in conjunction with broader concerns over global economic fragility linked to U.S. trade policy, particularly tariffs introduced by President Donald Trump. As of the previous Friday, crude oil prices settled slightly below $63 per barrel.

According to a recent Reuters poll, global oil demand is projected to grow by an average of 775,000 barrels per day by 2025. The International Energy Agency (IEA) similarly forecasts an increase of 740,000 barrels per day in its latest market outlook.

Source: Reuters