OPEC+ Plans Major Oil Production Increase for September
OPEC+ will complete its largest oil production increase in months this September, adding 550,000 barrels per day to global markets. Eight member countries are set to finish unwinding their voluntary production cuts from 2023, according to five sources familiar with the alliance’s discussions.
The September hike represents the final phase of reversing 2.2 million barrels per day in cuts implemented last year. These voluntary reductions were separate from the broader OPEC+ agreement and involved key producers working to stabilize oil prices during market uncertainty.
The production increase comes as global oil demand shows signs of recovery and prices have stabilized above $80 per barrel. OPEC+ members began gradually unwinding these specific cuts earlier this year, but September’s addition marks the most significant single-month increase in the process.
The eight countries involved in these voluntary cuts include Saudi Arabia, Russia, and other major producers within the 23-member OPEC+ alliance. Their coordinated approach to both reducing and restoring production demonstrates the group’s continued influence over global oil markets.
This development could impact fuel prices worldwide as additional supply enters the market. However, the timing suggests OPEC+ believes current demand can absorb the extra production without causing significant price volatility.
The alliance’s decision reflects growing confidence in global economic recovery and energy consumption patterns heading into the final quarter of 2024.
