OPEC+ Boosts Oil Output Amid Market Share Battle
Group increases production target despite previous cuts.
OPEC+ has agreed to increase oil production by 548,000 barrels per day for August, marking a shift in strategy after earlier cuts designed to support prices. This decision occurs against a backdrop of fluctuating oil prices and aims to restore market share.
Production Increase Details
The increase represents a jump from the 411,000 barrels per day monthly increases approved for May, June, and July, and a 138,000 barrel per day increase in April.
Eight member states within OPEC+ will drive the production surge, rolling back some of the 2.2 million barrels per day production cuts initiated in April.
According to OPEC+, stable global economic expectations and strong market fundamentals, including declining oil stocks, justify pumping more oil.
Market Dynamics and Competition
Sources indicate that OPEC+, which includes OPEC nations and allies such as **Russia**, seeks to expand its market share, especially as supplies from other producers like the **United States** increase.
With the August increases, OPEC+ will have increased production by 1.918 million barrels per day since April, leaving only 280,000 barrels per day remaining from the initial 2.2 million barrels per day reduction.
Background on Production Cuts
Since 2022, the group has been curtailing production to stabilize the market. However, this year’s adjustments aim to regain lost ground, particularly amid past calls from then-**US President Donald Trump** to increase pumping to lower gasoline prices.
However, some OPEC+ members, like **Kazakhstan** and **Iraq**, exceeded their allocated quotas, causing friction with members adhering to the cuts.
**Kazakhstan**’s production has rebounded, reaching record highs recently. The Energy Information Administration reports that in April 2024, the U.S. produced roughly 13.1 million barrels of crude oil per day (EIA).
Future Outlook
OPEC+ continues to implement other cuts of 3.66 million barrels per day. The group’s eight member states are scheduled to convene on August 3 for their next meeting.
