OPEC+ Approves 188,000 bpd Crude Output Increase for August

Seven core members of OPEC+ agreed to raise crude oil output by 188,000 barrels per day in August, the group said in a statement. The increase is part of a gradual unwinding of the production cuts that have supported prices since late 2022.

The adjustment applies to the seven countries that voluntarily cut output beyond the group-wide quotas: Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, and Algeria. Each will see a modest increase proportional to its baseline. The August hike follows a similar 188,000 bpd increase in July.

OPEC+ has been slowly restoring supply as it balances market share concerns with the risk of oversupplying a market where demand growth has been uneven. Brent crude, the global benchmark, traded near $82 a barrel ahead of the announcement. For a deeper look at crude oil fundamentals, see the crude oil profile.

The incremental supply is unlikely to shift the balance significantly in a market still facing geopolitical risks and refinery maintenance season. Traders said the market had largely priced in the gradual unwinding. The focus now shifts to the next monthly meeting and whether demand data justifies further increases.

OPEC+ next meets on Sept. 1 to set September quotas.