Ramped Up Oil Production by OPEC+ Countries
Oil-producing nations within OPEC+ have reached a consensus to boost oil production starting in July.
Transitioning to a fresh, engaging take: Eight major oil-producing nations, including Russia, Saudi Arabia, and Iraq, announced plans to boost oil production by 411,000 barrels per day in July. According to the Organization of the Petroleum Exporting Countries (OPEC), the decision was reached during online discussions on May 31 [1].
Here's a lineup of the participating countries: Russia, Saudi Arabia, Iraq, United Arab Emirates (UAE), Kuwait, Kazakhstan, Algeria, and Oman [2]. This move comes amid a promising global economic outlook and a robust oil market, as evidenced by low oil inventories [1].
The statement from the press release highlights these key points: gradual increases could be suspended or canceled if market conditions change. The group aspires to maintain oil market stability by retaining flexibility [1]. Moreover, the eight nations have committed to fully offsetting any overproduction from January 2024 [1].
As for future meetings, a gathering is scheduled for July 6, 2025, to decide on production levels for August [1]. It's worth noting that these eight nations earlier voluntarily shouldered additional constraints to curtail oil supply [2]. The existing limitations—1.65 million barrels per day until the end of 2026—remain in effect, while those of 2.2 million have started to phase out from April [2]. In early April, the OPEC+ eight decided to hasten the exit from restrictions, surpassing their production quota by 411,000 barrels per day in both May and June [2].
As we speak, OPEC has kept its production conditions agreement intact—valid until the end of 2026 [3].
Source: Moscow, Natalia Petrova, © 2025, RIA "Novy Day"
Enrichment Insights:
- Current Production Breakdown: OPEC+ nations have their production levels set as follows for June 2025: Saudi Arabia (9,367 kb/d), Russia (9,161 kb/d), Iraq (4,086 kb/d), UAE (3,092 kb/d), Kuwait (2,466 kb/d), Kazakhstan (1,500 kb/d), Algeria (928 kb/d), and Oman (775 kb/d) [2].
- Accelerated Production Increase: OPEC+ initially planned to reverse their 2.2 million barrels per day voluntary output cuts over an 18-month period from April 2025 to September 2026. However, they stepped up the process, implementing a 411 kb/d increase in both May and June [2].
- Future Production Plan: OPEC+ plans to keep gradually increasing production with the objective of nearly restoring 1 million barrels per day of voluntary cuts in the first three months. However, the accelerated production increases could lead to a supply surplus as global demand slows [5].
In the context of the recent decision by OPEC+ countries to boost oil production, the finance and energy sectors are anticipating potential impacts on global market stability and prices. This increased production in the oil-and-gas industry could significantly influence the overall performance of the global finance industry, given the importance of oil prices in global economics. The industry's focus now is on how these changes will affect energy markets and consumer economies worldwide.
