Oil production increases accelerate within OPEC+, adding 548,000 barrels per day starting in August.
In a move aimed at expanding market share and addressing growing supplies from rival producers like the United States, OPEC+ has decided to increase oil production by 548,000 barrels per day (bpd) in August 2025. This decision comes as a result of a steady global economic outlook, healthy market fundamentals, and low oil inventories.
This increase represents a combined four monthly increments, allowing the participating countries to accelerate compensation for any previous overproduction since January 2024. The eight OPEC+ members involved in this production boost are Saudi Arabia, Russia, the UAE, Kuwait, Oman, Iraq, Kazakhstan, and Algeria.
The decision aligns with an earlier agreement made in December 2024, where OPEC+ agreed to gradually and flexibly return 2.2 million bpd of previously reduced voluntary production, starting from April 2025. This approach allows for flexibility to pause or reverse increases should market conditions change, emphasising a goal of supporting oil market stability amid evolving demand and supply dynamics.
Key factors contributing to this decision include positive global economic prospects supporting oil demand, low oil inventories indicating balance in supply-demand, a commitment by the eight OPEC+ countries to comply with production agreements and compensate for past overproduction, and ongoing monitoring and readiness to adjust production monthly based on market conditions.
It is worth noting that this is the first production increase since oil prices jumped following Israeli and U.S. attacks on Iran. The group, which pumps about half of the world’s oil, has been curtailing production since 2022.
OPEC+ still has in place other layers of cuts amounting to 3.66 million bpd. Some members, including Kazakhstan and Iraq, have produced above their targets, angering other members that were sticking to cuts. Despite this, the group remains committed to maintaining market stability and ensuring a balanced supply of oil.
The group will next meet on August 3 to discuss further production adjustments. With the August increase, OPEC+ will have released a total of 1,918,000 bpd since April. Kazakh output returned to growth last month and matched an all-time high, contributing to this production boost.
Sources: [1] OPEC+ Increases Oil Production, OilPrice.com, July 31, 2025. [2] OPEC+ Agrees to Increase Oil Production by 548,000 Barrels Per Day in August 2025, Reuters, July 30, 2025.
- The increase in oil production by OPEC+, amounting to 548,000 barrels per day, is a strategic move aligned with the industry's finance and energy sectors, considering the positive global economic outlook, healthy market fundamentals, and the need to address growing supplies from rival producers, such as the United States.
- The decision to boost oil production by OPEC+ members, including Saudi Arabia, Russia, UAE, Kuwait, Oman, Iraq, Kazakhstan, and Algeria, is a comprehensive approach that addresses key factors, including oil market stability, demand-supply balance, and compliance with production agreements, while ensuring flexibility to adjust production based on evolving dynamics in the oil-and-gas sector.
