Overview

• OPEC+ agreed on Saturday to boost output by 548,000 barrels per day in August, marking its largest monthly increase since cuts began in 2022.
• The hike will come from eight core members—Saudi Arabia, Russia, the UAE, Kuwait, Oman, Iraq, Kazakhstan and Algeria—and nearly completes the unwinding of a 2.2 million bpd reduction.
• The OPEC Secretariat attributed the decision to a steady global economic outlook and healthy market fundamentals, including low oil inventories.
• Compliance tensions have surfaced as members such as Kazakhstan and Iraq exceed their quotas while others maintain voluntary cuts.
• The group will reconvene on August 3 to set September targets amid warnings of a potential supply glut if demand softens.