Opec+ increases oil production again to increase market share

Opec+ increases oil production again to increase market share

Opec+ decided on Sunday to increase oil production by 547,000 barrels a day for September. This is the latest step in a number of accelerated production increases to regain market share, since the concerns about possible delivery interruptions in connection with Russia increase.

comprehensive U -turn in production policy

This decision represents a complete and early reversal of the most important production cuts of Opec+, in addition to a separate increase in producer by the United Arab Emirates, which amounts to around 2.5 million barrels per day, or around 2.4% of global demand.

political pressure on the oil markets

Eight Opec+members held a short virtual meeting, while the US pressure on India increased to stop Russian oil purchases. This is part of Washington's efforts to bring Moscow to the negotiating table for a peace agreement with Ukraine. President Donald Trump said that he would like to achieve this by August 8th.

Opec+ justifies his decision

In an explanation after the meeting, Opec+ named the healthy economy and low inventory as reasons for its decision.

Current price situation on the oil market

The oil prices remain at a high level despite the increased oil production of Opec+. Brent-Rohöl closed on Friday at almost $ 70 per barrel, an increase of a low of almost $ 58 in April, supported by seasonally increasing demand.

market observations and outlook

"In view of the relatively strong oil prices around $ 70, Opec+ gives some trust in the market basics," commented Amrita sen, co-founder of Energy Aspects. She added that the market structure also reports close stocks.

further meetings and possible production cuts

The eight countries will meet again on September 7, to consider another layer of production cuts of around 1.65 million barrels per day, according to two Opec+sources after the Sunday meeting. These cuts are currently in force until the end of next year.

The role of Opec+

Opec+ comprises a total of 10 countries that do not belong to Opec, including Russia and Kazakhstan. The group, which promotes about half of the global oil, has throttled production in recent years to support oil prices. This year, however, she turned over to regain market share, partially initiated by Trump's demand to increase production.

historical production increases

The eight started in April with a moderate increase of 138,000 barrels per day, followed by larger than planned increases of 411,000 barrels per day in May, June and July, 548,000 barrels per day in August and now 547,000 barrels per day for September.

effects of global inventory

"So far, the market has been able to take these additional barrels well, also due to the warehouse activities in China," said Giovanni Staunovo from UBS. "All eyes will now be aimed at Trump's decision about Russia this Friday."

remaining production cuts

In addition to the voluntary cuts of around 1.65 million barrels per day by the eight members, Opec+ continues to have a general reduction of 2 million barrels per day, which also runs by the end of 2026.

The challenges for the future

"Opec+ passed the first test," said Jorge Leon von Rystad Energy, a former Opec official, since the group completely reversed its greatest cuts without a drop in prices. "But the next task will be even more difficult: to decide whether and when the remaining 1.66 million barrels will be broken down while navigating geopolitical tensions and keeping the cohesion."