Uche Cecil Izuora
The Organization of Petroleum Exporting Countries (OPEC) has signaled intention to increase crude oil production in August.
Seven OPEC+ members have already agreed to increase collective oil production by 188,000 bpd in August, continuing the gradual rollback of voluntary production cuts while reaffirming their commitment to maintaining market stability.
The decision was reached during a virtual meeting on Saturday by Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman, which have been implementing additional voluntary production adjustments since 2023.
The increase represents the next phase in unwinding the voluntary cuts announced in April 2023.
The OPEC+ said future production increases will remain subject to market conditions and could be accelerated, paused or reversed if necessary.
The group emphasized that it will continue to closely monitor global oil market fundamentals while maintaining a cautious approach to restoring production.
The seven countries also reiterated their commitment to full compliance with the OPEC+ Declaration of Cooperation and pledged to fully compensate for any production above agreed targets since January 2024.
The additional production will also allow participating countries to accelerate compensation for previous overproduction.
The producers said they will continue holding monthly meetings to review market conditions, production conformity and compensation efforts. Their next meeting is scheduled for August.