OIL PRODUCTION INCREASE AGREED UPON IN PRINCIPLE BY OPEC+, AS SOURCES REPORT
In a move aimed at balancing market stability amid evolving economic and geopolitical factors, the Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) have agreed in principle to boost oil output by approximately 548,000 barrels per day (bpd) in September 2025. This decision comes as voluntary production cuts initially set for phase-out by 2026 are ending ahead of schedule.
The increased supply is a response to a steady global economic outlook, low oil inventories, and pressure from major consuming countries like the U.S. to boost supply, especially amid geopolitical tensions such as threats of sanctions on Russian oil. The decision is expected at a meeting scheduled to begin at 1100 GMT.
Eight key OPEC+ members, including Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman, will be involved in this production increase. These countries had been voluntarily curtailing output since November 2023 but are now accelerating the return to higher production levels.
The production increases are part of OPEC+'s efforts to regain market share and as per demands from U.S. President Donald Trump. The group began output increases in April with a modest hike of 138,000 bpd. Larger hikes of 411,000 bpd were implemented in May, June, and July. An additional hike of 548,000 bpd is planned for August.
The implications for the global oil market are significant. An increased supply of about half a million barrels per day may put downward pressure on oil and gasoline prices, potentially making fuel cheaper for consumers. However, prices remain around $70 per barrel, partly due to factors such as potential sanctions on Russian energy exports and rising crude inventories in China, which complicate the supply-demand dynamics.
The decision by OPEC+ to boost output aims to ease supply constraints and alleviate price pressures. However, the move is subject to adjustment based on how market conditions develop, as noted by OPEC itself. The group, which produces about half of the world's oil, had been curtailing production for several years.
The meeting is taking place amid fresh U.S. demands for India to stop buying Russian oil. Washington seeks ways to push Moscow for a peace deal with Ukraine. Fresh EU sanctions have pushed Indian state refiners to suspend Russian oil purchases. These factors, along with the ongoing geopolitical tensions, will undoubtedly influence the market dynamics in the coming months.
[1] Reuters, "OPEC+ to boost oil output by 548,000 bpd in September - source," 2025. [2] Bloomberg, "OPEC+ Agrees to Boost Output by 548,000 Barrels Per Day in September," 2025. [3] Financial Times, "OPEC+ to increase oil output by 548,000 barrels per day in September," 2025. [4] Wall Street Journal, "OPEC+ to Boost Oil Output by 548,000 Barrels Per Day in September," 2025.
- The decision by OPEC+ to increase oil output by 548,000 barrels per day (bpd) in September 2025, as reported by several financial news outlets, includes major players like Iraq, among other countries, signifying their intent to boost supply in response to geopolitical tensions and economic demands.
- The energy sector, particularly the oil-and-gas industry, is set to witness a marked change with the indexes of key oil-producing nations like Iraq experiencing fluctuations in production due to OPEC+ decisions.
- Amidst this increased supply and regulatory measures, the finance sector may witness adjustments in prices, as the financial implications of these decisions unfold, potentially impacting consumer markets worldwide.
