VIENNA — Seven key OPEC+ producers have agreed to raise their combined oil production target by 188,000 barrels per day in August, extending a gradual monthly increase in supply as the group seeks to support market stability while responding to evolving global conditions.
The decision, announced after a virtual meeting on July 5, was made by Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman, the countries that have been implementing additional voluntary production adjustments since 2023. The increase marks the fifth consecutive monthly production adjustment under the group's current plan to gradually unwind earlier voluntary output cuts.
In a statement, the participating countries said the adjustment forms part of their commitment to maintaining oil market stability. They reiterated that future production changes would remain subject to market conditions and emphasized they retain "full flexibility" to increase, pause or reverse the phase-out of voluntary cuts if circumstances warrant.
The producers also reaffirmed their commitment to complying with the broader OPEC+ Declaration of Cooperation and pledged to compensate for any previous overproduction. They said monthly meetings would continue to assess market conditions, production conformity and compensation efforts, with the next meeting scheduled for Aug. 2.
The latest increase comes as crude prices have retreated from peaks reached earlier this year. Brent crude traded near $72 a barrel on Monday after the announcement, reflecting expectations of additional supply as oil exports from the Middle East gradually recover, although shipments remain below levels seen before regional disruptions earlier this year.
Analysts said the relatively modest increase suggests the producers are continuing a cautious approach rather than pursuing a rapid restoration of curtailed output. Market participants remain focused on whether member countries can deliver the planned production increases and whether global demand, particularly from major importers such as China, will strengthen sufficiently to absorb the additional barrels.
The production adjustment follows similar monthly increases implemented since April as the group gradually unwinds part of the voluntary cuts first introduced to support prices. According to the OPEC statement, the phased approach is intended to provide participating countries with greater flexibility while preserving the ability to respond quickly to changing market conditions.
