A coalition of eight leading oil producers within OPEC+, featuring energy giants Saudi Arabia and Russia, has opted to ramp up crude output by a greater-than-expected 548,000 barrels a day for August.
The decision, announced Saturday following virtual consultations, marks an acceleration from an earlier plan to boost by 411,000 barrels.
The group, also including Algeria, Iraq, Kazakhstan, Kuwait, Oman, and the UAE, cited resilience in global economic activity and upbeat market conditions—underscored by low inventory levels—as supporting factors for the expanded supply.
This subset of OPEC+ has operated voluntary supply curbs independently of the larger bloc’s agreements, including a 1.66 million barrels-per-day cut remaining until late next year and an additional 2.2 million barrels-per-day reduction, set to ease by the end of this quarter.
The group had initially outlined a gradual monthly production increase of 137,000 barrels through September 2026, but has recently quickened the pace, lifting the monthly increment to 411,000 barrels since May and now pushing it even further for August.
Global oil prices have recently responded to geopolitical jitters—including a brief flare-up between Israel and Iran—and strong summer demand. At Friday’s close, Brent futures for September settled at $68.30 per barrel, while front-month Nymex West Texas Intermediate crude ended at $66.50.
This morning, Brent futures lost 50 cents or 0.7% to $68.30 a barrel, and the West Texas Intermediate (WTI) decreased 50 cents or 0.75% to $66.50 per barrel ahead of 1 PM EDT (1700 GMT).
