OPEC+ Poised to Implement Additional Accelerated Oil Output Increase in August, Reuters Reports

• OPEC+ Seeks to Regain Market Share Through Planned Output Increase
• Overproduction by Certain Member States Has Led to Internal Tensions Within OPEC+
• Prospective Increase in Iranian Oil Supply May Complicate OPEC+ Negotiations

LONDON/MOSCOW/DUBAI, June 27 (Reuters) – The Organization of the Petroleum Exporting Countries and its allies (OPEC+) is expected to announce a substantial production increase of 411,000 barrels per day (bpd) for August, according to four delegates who spoke with Reuters. The move is part of the group’s broader effort to reclaim market share.

If confirmed, the additional output would bring the total increase in OPEC+ supply this year to approximately 1.78 million bpd—equivalent to more than 1.5% of global oil demand. However, the group has not yet achieved the full volumes agreed upon, as some member states are still compensating for prior overproduction, while others require more time to restore their production capacity.

This year marks a significant policy shift for OPEC+, following years of production cuts amounting to over 5 million bpd. The change began in April when eight member countries began unwinding a recent collective output cut of 2.2 million bpd. Production increases have since been accelerated through May, June, and July, even as the additional supply has exerted downward pressure on crude oil prices.

The eight countries involved in the most recent production adjustments include Saudi Arabia, Russia, Kuwait, Iraq, the United Arab Emirates, Kazakhstan, Oman, and Algeria. The group is scheduled to convene on July 6.

Analysts from Energy Aspects, as well as Helima Croft of RBC Capital Markets, anticipate a production hike of 411,000 bpd in August.

Source: Reuters