The Organisation of the Petroleum Exporting Countries and its allies (OPEC+) have agreed to increase crude oil production by 188,000 barrels per day (bpd) from August, reaffirming their commitment to maintaining stability in the global oil market amid evolving demand and supply conditions.
The decision was reached during a virtual meeting of seven OPEC+ member countries that have been implementing additional voluntary production adjustments since April and November 2023.
The participating countries include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman.
In a statement issued on Sunday, OPEC said the ministers reviewed current market conditions and the global oil outlook before agreeing to proceed with the gradual increase in production.
“In their collective commitment to support oil market stability, the seven participating countries decided to implement a production adjustment of 188 thousand barrels per day from the additional voluntary adjustments announced in April 2023,” OPEC said.
The organisation stated that the latest production adjustment will take effect in August 2026 as part of the group's phased approach to restoring previously withheld crude supplies to the market.
According to OPEC, the voluntary production cuts introduced in April 2023 remain flexible and can be returned either partially or in full depending on future market developments.
The oil-producing alliance stressed that it would continue to monitor global market conditions closely and maintain a cautious approach to future production decisions.
The group also retained the flexibility to either increase, pause or reverse the gradual phase-out of the voluntary production cuts, including those announced in November 2023, should market conditions require such action.
OPEC said the latest adjustment would also help participating countries accelerate efforts to compensate for previous instances where production exceeded agreed quotas.
“The seven OPEC+ countries also noted that this measure will provide an opportunity for the participating countries to accelerate their compensation,” the organisation stated.
Reaffirming their commitment to the broader Declaration of Cooperation, the participating countries pledged to remain fully compliant with both their official production targets and the additional voluntary output adjustments overseen by the Joint Ministerial Monitoring Committee (JMMC).
The producers also reiterated their intention to compensate fully for any overproduction recorded since January 2024.
OPEC disclosed that the seven participating countries will continue holding monthly meetings to review market developments and determine appropriate production levels. Their next meeting has been scheduled for August 2.
The latest decision follows a similar agreement reached on June 7, when the alliance approved an identical production increase of 188,000 barrels per day for July, underscoring its strategy of gradually restoring supply while seeking to avoid excessive volatility in global oil markets.