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3w ago

OPEC+ Accelerates August Supply Increase to 548,000 bpd as Oil Prices Hold in High-$60s

Tight inventories have absorbed OPEC+’s accelerated output increase, with geopolitical risks plus looming US tariffs underpinning oil prices.

A drone view shows a portion of the crude oil tank farm in Midland, Texas, U.S. June 11, 2025. REUTERS/Eli Hartman/File Photo
A pump jack operates near a gas turbine power plant in the Permian Basin oil field outside of Odessa, Texas, U.S. February 18, 2025. REUTERS/Eli Hartman/File Photo
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Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia. Though the actual output increase of oil has been less than planned, most it is from Saudi Arabia.

Overview

  • On July 6, OPEC+ approved a surprise 548,000 barrels per day production hike for August, exceeding its previous 411,000 bpd monthly increases.
  • Oil prices initially dipped but stabilized in the high-$60 range as physical market tightness absorbed most of the added output.
  • Analysts report that actual supply additions have fallen short of targets, with Saudi Arabia accounting for the majority of the new barrels.
  • Houthi rebel attacks on Red Sea shipping have added a geopolitical risk premium that supports crude prices despite rising production.
  • US President Donald Trump delayed the start of higher tariffs to August 1 but maintained plans for steep duties, stoking doubts about future oil demand.