OPEC+ Ditches Voluntary Output Cuts, Boosts Oil Production by 188k BPD

OPEC+, a group of oil-producing countries led by Saudi Arabia and Russia, announced it will roll back all 'voluntary' production cuts starting from September. This decision comes after their latest meeting on Sunday.

The group agreed to increase production by around 188,000 barrels per day, which will be implemented next month. This move completes the unwinding of a layer of voluntary output cuts initiated in 2023 by core OPEC+ members - Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman.

These countries originally agreed to cut oil production by 1.65 million barrels per day in 2023. Although the UAE left OPEC+ in May, its departure has had little impact on the group's decisions.

The OPEC+ Joint Ministerial Monitoring Committee expressed concern about attacks on energy infrastructure and noted that restoring damaged assets to full capacity is costly and time-consuming, affecting overall supply availability.