Kuwait reinforces its pledge to reduce oil production under OPEC+ agreements, aiming for a more stable oil market.
In a significant move, the OPEC+ alliance, comprising eight key oil-producing nations, has agreed to incrementally increase oil production in a strategic and monitored approach. The decision was made at a virtual ministerial meeting chaired by Kuwait's Oil Minister, Tariq Al-Roumi, and attended by countries committed to the OPEC+ framework.
The agreed-upon increase of 548,000 barrels per day (bpd) in oil production, effective from August 2025, represents a significant step. This figure represents four monthly increments combined, reflecting a gradual and flexible return of voluntary production cuts totaling 2.2 million bpd that started on April 1, 2025, following a decision made in December 2024.
The participating countries, which include Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, aim to accelerate the compensation process for previous production adjustments, ensuring full conformity with the Declaration of Cooperation (DoC). They have confirmed their intent to compensate fully for any volumes overproduced since January 2024.
The production adjustment aims to enhance stability in the global oil market by responding flexibly to market conditions, maintaining low oil inventories, providing a mechanism for participating countries to adjust output cooperatively, and balancing both market share and price stability considerations amid a steady global economic outlook.
Minister Al-Roumi emphasized that the strategy to manage output is disciplined and calculated, addressing ongoing market volatility. He also highlighted that strengthened investor confidence is a result of this unity. The meeting underscored a shared understanding among member nations for responsive production management.
The meeting was reported by Al-Jarida daily and served as further evidence of the collective efforts of the OPEC+ alliance to support balanced oil markets. The meeting also demonstrated the alliance's proactive and adaptive strategy, with the next meeting scheduled for August 3, 2025, to decide September production levels.
Kuwait's delegation to the meeting was led by Kuwait's Governor to OPEC, Mohammed Al-Shatti, and included National Representative to OPEC, Sheikh Abdullah Sabah Al-Salem. The meeting was held to discuss the recovery of market fundamentals and improving global economic prospects.
In summary, this calibrated increase is part of a strategic, monitored approach to gradually restore production while preserving market stability and addressing past overproduction transparently and cooperatively. The production adjustment is aimed at supporting balanced oil markets, contributing to a stable global economy.
In light of the agreed-upon incremental increase in oil production, the participating countries, including Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, are now looking to invest more in the energy sector to finance their economies and the industry at large. This strategic move will not only aid in enhancing market stability but also ensure a steady global economic outlook, fostering investor confidence and further strengthening the OPEC+ alliance's commitment to supporting balanced oil markets.
