OPEC+ Announces Major August Oil Production Hike
OPEC+ has agreed to increase oil production by 548,000 barrels per day (bpd) in August. The decision came during the group’s first meeting since oil prices surged—then retreated—after U.S. and Israeli military strikes on Iran. This move marks a faster pace of supply growth compared to previous months.
Strategic Shift After Years of Oil Output Cuts
Since 2022, OPEC+ has limited oil production to support prices. But 2025 marks a reversal. The alliance is now prioritizing market share over price control. The latest decision brings the total volume of oil returned to the market since April to nearly 1.92 million bpd.
U.S. Pressure Mounts as Gasoline Prices Stay High
The United States, under President Trump, has urged OPEC+ to increase oil production. The goal: reduce gasoline prices at home. The group’s response appears to align with that pressure, especially as global inventories stay low and consumer demand remains strong.
Key OPEC+ Members Driving the Increase
The additional barrels in August will come from eight OPEC+ members: Saudi Arabia, Russia, UAE, Kuwait, Oman, Iraq, Kazakhstan, and Algeria. These nations began reversing cuts of 2.2 million bpd earlier this year. Kazakhstan’s output, notably, has returned to record levels.
Market Share Battle Among Global Oil Producers
Sources say OPEC+ is keen to expand its oil market share, especially against growing competition from U.S. shale producers. With more oil coming from North America, the group sees volume growth as key to staying relevant and profitable in an evolving energy landscape.
Accelerated Increases Signal Oil Strategy Shift
August’s output increase is significantly larger than those in previous months—411,000 bpd for May, June, and July, and 138,000 bpd in April. On top of that, the UAE received approval to raise its oil output by an additional 300,000 bpd.
Tensions Over Quotas Inside OPEC+
Some members like Kazakhstan and Iraq have produced above their agreed limits, causing friction within the group. These overproductions frustrated compliant nations, prompting this coordinated acceleration. The goal is to unify output increases and avoid disjointed market messaging.
More Oil Still Locked Under Layered Cuts
Even after these recent increases, OPEC+ still has 3.66 million bpd in oil cuts active. With just 280,000 bpd left to unwind from the April 2024 cut agreement, attention now turns to future meetings. The group’s next decision is expected on August 3.
