Increase in Oil Production by OPEC+ Reinforces Competition in World Markets
In a significant move, the OPEC+ group, which includes 10 non-OPEC oil producing countries such as Russia and Kazakhstan, has decided to increase oil production by 547,000 barrels per day in September 2025 [1][2][3]. This decision marks a full and early reversal of the largest tranche of output cuts, which were originally scheduled to be phased out by the end of 2026 [1][3].
The eight member countries—Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman—had been under voluntary production cuts. These cuts, totalling 2.2 million barrels per day, began easing in April 2025 [1][2]. The decision comes amid concerns over potential supply disruptions linked to Russia and amid increasing U.S. pressure on India to halt Russian oil purchases [3].
The September increase follows a similar boost of 548,000 barrels per day in August 2025, reflecting a gradual phase-out of voluntary cuts. The group has emphasized flexibility in their approach, stating that the phase-out may be paused or reversed depending on evolving market conditions to maintain oil market stability [1][2].
Looking ahead, the group is scheduled to meet again on September 7, 2025, where they may consider reinstating additional output cuts of about 1.65 million barrels per day that are currently set until the end of 2026 [3]. This potential reversal reflects concerns about market balance, especially amid geopolitical factors such as sanctions related to Russian oil [3].
The move to increase production is part of a series of accelerated output hikes to regain market share. The group cited a healthy economy and low stocks as reasons behind their decision [1][2]. This policy shift marks a move from defending prices through cuts to gradually increasing supply, with ongoing vigilance over market fundamentals and geopolitical developments [1][2][3][4].
Oil prices have remained elevated, with Brent crude closing near $70 a barrel on Friday [1]. The group, which pumps about half of the world's oil, had been curtailing production for several years [1]. The production increase is a step towards normalizing production levels and stabilizing the global oil market.
[1] Reuters. (2025, August 6). OPEC+ agrees to raise oil production by 547,000 barrels per day for September. Retrieved from https://www.reuters.com/business/energy/opec-agrees-raise-oil-production-547-000-barrels-per-day-september-2025-08-06/
[2] Bloomberg. (2025, August 6). OPEC+ Agrees to Boost Output, Ending Early Its Largest Tranche of Cuts. Retrieved from https://www.bloomberg.com/news/articles/2025-08-06/opec-agrees-to-boost-output-ending-early-its-largest-tranche-of-cuts
[3] Financial Times. (2025, August 6). OPEC+ to consider deeper output cuts amid geopolitical concerns. Retrieved from https://www.ft.com/content/0072f9c9-38c9-4c1c-911c-1d4f8d8c7e8b
[4] The Washington Post. (2025, August 6). OPEC+ agrees to boost oil production, signaling a shift from price defense to market share. Retrieved from https://www.washingtonpost.com/business/2025/08/06/opec-agrees-boost-oil-production-signaling-shift-price-defense-market-share/
The OPEC+ group, which consists of countries from various industries such as Russia and Kazakhstan, has decided to increase oil production, a significant move in the energy sector. This increase in oil-and-gas production, totaling 547,000 barrels per day in September 2025, is part of a policy shift towards gradually increasing supply, driven by a healthy economy and low stocks in the finance sector.
