OPEC+ to Further Accelerate Supply Boost With Larger August Hike

[BumRushDaShow]

Source: Yahoo! Finance/Bloomberg

Sat, July 5, 2025 at 10:50 AM EDT


(Bloomberg) -- OPEC+ will increase oil production even more rapidly than expected next month, as the group led by Saudi Arabia seeks to capitalize on strong summer demand in its move to reclaim market share.

Eight key alliance members agreed to raise supply by 548,000 barrels a day at a video conference on Saturday, putting the group on pace to unwind its most recent layer of output cuts one year earlier than originally outlined. The countries had announced increases of 411,000 barrels for each of May, June and July — already three times faster than scheduled — and traders had expected the same amount for August.

The latest increase amplifies a dramatic strategy pivot by the Organization of the Petroleum Exporting Countries and its partners that has weighed on oil prices this year. Since April, the group has shifted from years of output restraint to reopening the taps, surprising crude traders and raising questions about its long-term strategy. Saturday’s decision was based on “a steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories,” OPEC’s Vienna-based secretariat said in a statement.

The cartel will consider adding another roughly 548,000 barrels a day in September at the next meeting on Aug. 3, according to delegates who asked not to be identified, which would complete the revival of 2.2 million barrels a day of supply shuttered in 2023. After that, the group has another 1.66 million-barrel tier of idle output to potentially consider. OPEC+ is pushing barrels into a market that is widely expected to be oversupplied later in the year.

Read more: https://finance.yahoo.com/news/opec-boost-supply-even-faster-110158457.html

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REFERENCES

https://www.democraticunderground.com/10143387706
https://www.democraticunderground.com/10143432624
https://www.democraticunderground.com/10143453831
https://www.democraticunderground.com/10143469225

[Callie1979]

1. And Trump will get credit for lower gas prices.

Meanwhile when Biden was president they CUT production. Gee, I cant imagine how the 2 are connected

[IbogaProject]

2. This will pinch oil extraction here

We are reaching or reached peak demand, so now there is a race to grab as much profit as possible as the demand starts to decline. So yes he will get credit for lower retail prices, unless the industry does things to reduce refining capacity. They did that in California awhile ago. His subsidies to producers will be wasted.