Eight countries of OPEC+ increase production by 547,000 bpd

LONDON:

Saudi Arabia, Russia and six key members of the OPEC+ alliance said on Sunday that they will increase production by 547,000 barrels a day in a move that analysts say they aim to regain market share amid resistant crude prices.

Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman, along with the Saudi and Russians-with the nickname of volunteers (V8)-today about 41-42 million barrels a day,

Analysts said it was unlikely that there would be a significant impact on prices, with Brent’s reference oil being sold today at about $ 70 a barrel.

“The eight participating countries will implement a production adjustment of 547,000 barrels a day in September 2025 from August 2025 requires a level of production,” a statement released after a meeting was agreed.

The eight main producers, who began to increase production in April, confirmed their commitment to market stability to “current fundamental principles of the oil market”, according to an OPEC statement.

Oil prices have been better held than observers who were expected in the midst of strong summer demand and a high geopolitical premium, mainly due to a conflict between Iran and Israel.

“OPEC+ has passed the first test – unraveling 2.2 million barrels per day (from April) without collapsing prices or compromising the section,” said Jorge Leon, an analyst of Rystad Energy.

“But the next task will be even more difficult: deciding whether and when to relax the remaining 1.66 million barrels, all while navigating geopolitical tension and maintenance of cohesion,” Leon said.

The statement after the meeting said the decision came “in view of a stable global economic perspective and today’s fundamental hygiene markets, as reflected in low oil reserves”.

OPEC+ countries agreed in December to launch a gradual performance of the 2.2 million barrels daily of previous production cuts last April.

The last move, a year before an 18 -month initial program, completes the liquidation and also provides for a 300,000 barrels a day, which is specifically given to the United Arab Emirates.

The statement stated that “the phase of additional voluntary production adjustments may cease or be reversed without prejudice to the evolving market conditions”.

Eight added that they would hold monthly meetings for regular review of market conditions.

At present, the return of other production cuts must be discussed at the next ministerial meeting of OPEC+ in late November, with all 22 members.

However, OPEC said the V8 will meet for the first time on September 7th.

In an effort to boost prices, the wider OPEC+-which includes the organization of 12 nations of the oil exporting countries (OPEC) and its allies-in recent years had agreed in three different doses of production cuts of almost six million BPDs in total.

After a long period of producers seeking to combat prices by applying production cuts to make oil rare, the recent months have seen a shift in the strategy.

Prior to the announcement, UBS analyst Giovanni Staunovo had suggested that the increase in quotas was “largely to a large extent in” energy markets.

What is happening in the coming months is less certain, but Ing’s Warren Patterson said the “basic scenario” will see the V8 output increases for now.

For Patterson, a significant surplus can come from the fourth quarter of this year, which OPEC+ should carefully manage.

“The alliance is trying to find a balance between the recovery of the market share and avoiding a sharp decline in oil prices,” not to eliminate its profits, said Tamas Varga of PVM Oil associates.

Market experts warn that forecast is particularly difficult, given the uncertainty of US President Donald Trump invoices and its results in world trade, as well as the 10 -day deadline for Russia to end the war in Ukraine.