OPEC+ Agrees to Increase Oil Production by 411,000 Barrels Per Day Starting July
The oil alliance's decision marks a third consecutive month of production increases amid fluctuating crude oil prices.
The OPEC+ alliance has reached an agreement to raise oil production by 411,000 barrels per day starting in July, accelerating the resumption of previously halted production.
This decision follows similar increases made in May and June and comes at a time when crude prices have fallen to their lowest levels in four years, according to a statement issued by the coalition.
During a virtual meeting, member nations, including Saudi Arabia, Russia, the United Arab Emirates, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, reaffirmed their shared commitment to stabilizing the oil market amidst currently strong market fundamentals and agreed to adjust production upwards.
This production increase follows earlier agreements in May and June, which ended several years of coordinated efforts by the group to bolster global oil prices.
The eight countries also pledged to fully compensate for any excess production starting January 2024. As part of this commitment, OPEC+ will hold monthly meetings to review market conditions, compliance, and compensatory measures.
The next meeting is scheduled for July 6, 2025, to set production levels for August.
The decision represents the third consecutive month that the OPEC+ group has opted to increase production, having previously agreed to similar increases for June and May.
Additionally, a meeting held three days prior to the latest agreement resulted in a mandate for the OPEC secretariat to develop a mechanism for assessing the maximum sustainable production capacity (MSC) of the member states.
This assessment is intended to serve as a reference point for determining baseline production levels for all oil alliance members for the year 2027. The 39th Ministerial Meeting of OPEC+ countries, which includes a total of 22 nations, endorsed the current production quotas established at the group level.
In its May report, OPEC maintained its projections for global oil demand growth at 1.3 million barrels per day for both this year and next, with assessments suggesting a decline in supply from outside the organization.
The report indicated that global oil demand is expected to reach approximately 106.2 million barrels per day by the fourth quarter of this year, reflecting a downward revision of about 200,000 barrels per day from April projections.
For the entirety of 2025, the forecast remains steady at approximately 105 million barrels per day, unchanged from previous forecasts.
This decision follows similar increases made in May and June and comes at a time when crude prices have fallen to their lowest levels in four years, according to a statement issued by the coalition.
During a virtual meeting, member nations, including Saudi Arabia, Russia, the United Arab Emirates, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, reaffirmed their shared commitment to stabilizing the oil market amidst currently strong market fundamentals and agreed to adjust production upwards.
This production increase follows earlier agreements in May and June, which ended several years of coordinated efforts by the group to bolster global oil prices.
The eight countries also pledged to fully compensate for any excess production starting January 2024. As part of this commitment, OPEC+ will hold monthly meetings to review market conditions, compliance, and compensatory measures.
The next meeting is scheduled for July 6, 2025, to set production levels for August.
The decision represents the third consecutive month that the OPEC+ group has opted to increase production, having previously agreed to similar increases for June and May.
Additionally, a meeting held three days prior to the latest agreement resulted in a mandate for the OPEC secretariat to develop a mechanism for assessing the maximum sustainable production capacity (MSC) of the member states.
This assessment is intended to serve as a reference point for determining baseline production levels for all oil alliance members for the year 2027. The 39th Ministerial Meeting of OPEC+ countries, which includes a total of 22 nations, endorsed the current production quotas established at the group level.
In its May report, OPEC maintained its projections for global oil demand growth at 1.3 million barrels per day for both this year and next, with assessments suggesting a decline in supply from outside the organization.
The report indicated that global oil demand is expected to reach approximately 106.2 million barrels per day by the fourth quarter of this year, reflecting a downward revision of about 200,000 barrels per day from April projections.
For the entirety of 2025, the forecast remains steady at approximately 105 million barrels per day, unchanged from previous forecasts.
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Translated by AI