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OPEC+ Approves Unprecedented 548,000 BPD August Output Hike

The increase is the latest step in a strategic pivot to reclaim market share after nearly three years of production cuts.

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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.