Opec+ raises August output by 188,000 bpd

BUSINESS REPORTER
MUSCAT, JULY 5
Eight Opec+ producers agreed on Sunday to raise oil production by a combined 188,000 barrels per day (bpd) in August, continuing the gradual unwinding of voluntary output cuts while reaffirming their commitment to maintaining stability in the global oil market.
Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman reached the decision during a virtual meeting to review global market conditions and the outlook. The increase forms part of the additional voluntary production adjustments first announced in April 2023.
Under the agreement, Saudi Arabia and Russia will each increase production by 62,000 bpd in August. Iraq will raise output by 26,000 bpd, Kuwait by 16,000 bpd, Kazakhstan by 10,000 bpd, Algeria by 6,000 bpd and Oman by 5,000 bpd, bringing Oman's required production level to 836,000 bpd. The combined increase totals 188,000 bpd.
The producers said the phased return of production could be adjusted according to market developments, stressing that the voluntary cuts introduced in April 2023 could be reversed either partially or in full if required.
They reaffirmed the importance of maintaining a cautious and flexible approach, retaining the option to increase, pause or reverse the phase-out of voluntary production cuts, including those announced in November 2023, depending on market conditions.
The group said the latest adjustment would also provide participating countries with an opportunity to accelerate compensation for previous overproduction. The countries reiterated their commitment to full compliance with the OPEC+ Declaration of Cooperation and pledged to compensate fully for any production above agreed levels since January 2024.
The Joint Ministerial Monitoring Committee (JMMC) will continue to monitor conformity with production targets and compensation plans.