OPEC+ announces supply boost plan

Eight members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) have agreed to collectively increase their supply by 411,000 b/d in July, compared to June’s production levels.

IMAGE: OPEC's logo. Getty Images

This is the third month in a row that they plan to expedite the unwinding of their joint 2.2 million b/d output cuts.

The eight OPEC+ members - Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman - met virtually on 31 May to review global market conditions.

The coalition attributed the decision to “steady global economic outlook and current healthy market fundamentals” as it aims to gradually phase out its collective production cuts between April 2025 and June 2026.

“By the end of July, the group will have brought back more than 60% of the 2.2m b/d [2.2 million b/d] worth of planned supply increases,” two analysts from ING Bank remarked.

OPEC’s de-facto leader Saudi Arabia is now slated to produce 9.5 million b/d in July. Russia’s output will surpass 9.2 million b/d, while Iraq and the UAE will produce about 4.1 million b/d and 3.2 million b/d, respectively, the OPEC secretariat said. 

“The latest increase is in line with our expectations. We’re also assuming that OPEC+ will continue with these large supply hikes.,” ING analysts said.

Meanwhile, OPEC+ producer Kazakhstan said that it has no plans to curb oil output in the upcoming months, according to media reports. The country, after repeatedly exceeding production quota over the past year, said earlier that it would put national interest before the oil coalition’s and continue to maintain higher production levels.

The eight countries will meet again on 6 July to decide on August production levels, according to the OPEC statement.

By Aparupa Mazumder

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