Seven OPEC+ nations agreed on Sunday to increase the oil production ceiling by 188,000 barrels per day (bpd) in September compared to August levels, according to a statement released following a virtual meeting of the producer group.

The decision was announced after a meeting attended by representatives from Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. The participating countries reviewed global oil market conditions and the outlook for supply and demand before reaching their agreement.

OPEC+ comprises the 12 members of the Organization of the Petroleum Exporting Countries (OPEC) plus a coalition of allied oil-producing nations, with Saudi Arabia and Russia serving as the de facto leaders of the group. Together, OPEC+ members collectively account for roughly half of the world's oil production and a substantial share of global exports, giving the group significant influence over global crude benchmarks such as Brent and WTI.

In their statement, the seven countries reaffirmed their collective commitment to supporting oil market stability and decided to implement a production increase drawn from the voluntary cuts first announced in April 2023. Those voluntary cuts, totaling 1.65 million bpd, were initially introduced in April 2023 and have since been extended through the end of 2026.

Sunday's decision marks the sixth consecutive month in which OPEC+ has moved to raise its production levels, reflecting a phased unwinding of the earlier supply curbs. The incremental approach comes as the group weighs its price-support objectives against rising output from non-OPEC producers, with U.S. crude production having reached record levels in recent years, increasing competitive pressure on OPEC+ market share.

According to the statement, the seven countries will continue to flexibly adjust their production in response to evolving market conditions. They are scheduled to convene again on September 6 to determine production levels for October.

Source: Xinhua