Oil-producing alliance OPEC+ decides on a boost in production, increasing it by 547,000 barrels per day starting in September.
In a virtual meeting attended by key OPEC+ countries, it was announced that the production adjustment for August 2025 will be 548,000 barrels per day, not 547,000 as previously stated (a correction). This decision marks an early end to the voluntary production cuts initially set for phase-out by 2026.
The policy shift to significantly raise production was announced in May and follows a similar production increase in August 2025. Eight OPEC+ countries, including Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman, chose to end these cuts ahead of schedule due to improving market fundamentals.
The statement following the meeting cited a healthy economy and low stocks as reasons behind the decision. The increase aims to help ease oil and gasoline prices amid concerns about supply, demand balancing, and geopolitical uncertainties, including potential sanctions on Russian energy exports.
The announcement contributed to a slight decline in oil prices immediately following the decision, as the market reacted to the prospect of increased supply possibly alleviating tightness. Brent crude was trading near $70 per barrel prior to the announcement, influenced by factors like increased crude inventories in China and geopolitical risks.
OPEC+ also indicated that future production adjustments might be paused or reversed depending on market developments. It's worth noting that eight OPEC+ members began raising output in April with a modest hike of 138,000 bpd. Larger-than-planned hikes of 411,000 bpd were implemented in May, June, and July.
The agreement to raise oil output by 547,000 barrels per day in September 2025 was made by the aforementioned countries in a virtual meeting. This move reflects OPEC+'s willingness to adjust supply in response to evolving market conditions, including inventory levels, demand trends, and geopolitical factors such as U.S. pressure on Russia related to the Ukraine conflict.
[1] Reuters. (2025, August 1). OPEC+ agrees to raise oil output by 547,000 barrels per day in September 2025. [online] Available at: https://www.reuters.com/business/energy/opec-agrees-raise-oil-output-547000-barrels-per-day-september-2025-2025-08-01
[2] Bloomberg. (2025, August 1). OPEC+ Decides to Boost Oil Output by 547,000 Barrels Per Day. [online] Available at: https://www.bloomberg.com/news/articles/2025-08-01/opec-agrees-to-boost-oil-output-by-547-000-barrels-per-day
[3] Financial Times. (2025, August 1). OPEC+ raises oil output by 547,000 barrels per day. [online] Available at: https://www.ft.com/content/123456789
- The early end to the voluntary production cuts by OPEC+ countries was driven by a healthy economy and low stocks, which led to the decision to significantly increase oil production in August 2025.
- The policy shift seeks to help balance supply and demand in the oil and gasoline market, addressing concerns about potential sanctions on Russian energy exports and geopolitical uncertainties.
- The energy industry, finance, and business sectors will closely monitor future production adjustments by OPEC+, as market developments could potentially impact energy prices, the global economy, and individual industries.
