OPEC+ allies, including Kazakhstan, ratchet up oil production levels
Updating Oil Production: The Latest OPEC Adjustments
Between July 2025 and now, eight key OPEC+ countries, including Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman, have plans to collectively ramp up their oil production by 411,000 barrels per day. This move is a continuation of the strategy by these countries to gradually and flexibly increase their output, following previous incremental adjustments.
At their virtual meeting on May 31, 2025, representatives from these countries assessed global market conditions and projections. Since April 2023 and November 2023, these countries had already notified of voluntary adjustments in their oil production.
Quoting their official statement, the OPEC press service reported that this latest adjustment, effective from July 2025, would see a decrease of 411,000 barrels per day from their required production level in June 2025. This translates to three monthly increases, as illustrated in the following table:
| Month | Adjustment (Barrels per day) ||---------------|----------------------------|| July 2025 | 411,000 || August 2025 | TBD || September 2025| TBD |
Under the decision reached on December 5, 2024, these countries have agreed to gradually restore their total 2.2 million barrels per day voluntary adjustments since April 1, 2025. This oscillation may pause or cease depending on fluctuating market conditions, which will help maintain oil market stability.
Furthermore, the OPEC+ group affirmed that this move would afford participating countries the opportunity to expedite compensation payments. They will keep their monthly meetings to evaluate market conditions, adherence to production targets, and compensation for overproduced volumes since January 2024. The next meeting is set for July 6, 2025, where production levels for August will be decided.
The discussion was not void of interesting exchanges, as exemplified below:
Tair: 40 dollars per barrel is good, but 20 is even better! 😁😁😁BOSS: Tair, then our tenge will fly to the moon when you write nonsense.Conscience: BOSS, but the people won't benefit from it, oil doesn't belong to the people.Chardonnay Lotta: but all prices are tied to the dollar! Even a bunch of parsley at grandma's market....
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Besides, it is essential to understand Kazakhstan's recent position. In June 2024, Kazakhstan voluntarily reduced its oil production due to overshooting production commitments in May.
Privacy concerns arose when U.S. President Donald Trump advocated for the OPEC countries to lower oil prices earlier this year to hasten the end of the Ukraine war. However, stability seems to be the priority for OPEC+, with nations working towards a balance between high-priced oil to please OPEC and low-priced oil to align with the United States and Europe's aspirations for low inflation.
Should this latest increase translate to higher fuel prices in the near future? Only time will tell.
The latest OPEC adjustments, effective from July 2025, involve a decrease of 411,000 barrels per day from the required production level in June 2025, as a continuation of the strategy by OPEC+ countries to increase their output in the energy sector, particularly in the oil-and-gas industry and finance. This move is expected to provide participating countries with the opportunity to expedite compensation payments, further underscoring the industry's significance in global finance.
