Vienna, Austria – The Association of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, announced Sunday a collective increase in oil production quotas of 547,000 barrels per day for September 2025. The decision, made by energy ministers from Saudi Arabia, russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, signals a shift in strategy towards reclaiming market share as global oil prices remain relatively subdued.

Rising Production Quotas Reflect Lower prices

The move comes as Brent crude, the international benchmark, currently trades around $70 per barrel, significantly lower than its peak of $120 reached in Spring 2022 following Russia’s invasion of Ukraine. This price decline has prompted OPEC+ to move away from previous strategies of production cuts aimed at bolstering prices.

For months, the group engaged in a series of production cuts, including a significant 2.2 million barrels per day reduction voluntarily implemented by Saudi Arabia,Russia,Iraq,the United Arab Emirates,Kuwait,Kazakhstan,Algeria,and Oman. The September increase effectively reverses this earlier cut.

Giovanni Staunovo, a commodity analyst at UBS Bank, anticipates the increase was already factored into current crude oil prices and does not foresee important market disruption upon Monday’s reopening. Though, Warren Patterson, Head of Commodity Strategy at ING, suggests a potential pause in further increases is highly likely in the coming months, indicating a cautious approach to future production adjustments.

Historical Trends and OPEC+ Dynamics

OPEC, founded in 1960 in baghdad, Iraq, by five founding members – Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela – initially aimed to coordinate petroleum policies among its member countries.Over time, the organization has evolved, expanding its membership and influence on global oil markets.The addition of non-OPEC nations like Russia, forming the OPEC+ alliance in 2016, further solidified its control over a significant portion of global oil supply.

The relationship between OPEC+ members is frequently enough complex, balancing individual national interests with the collective goal of market stability. Saudi Arabia, as the largest producer within OPEC, and Russia, as a key non-OPEC partner, frequently enough play pivotal roles in shaping the group’s decisions. Recent years have seen periods of both cooperation and tension, particularly in response to geopolitical events and fluctuating demand.

The current strategy of prioritizing market share over price support reflects a recognition that sustained high prices can incentivize increased production from non-OPEC sources, such as the United States, perhaps eroding OPEC+’s long-term influence. By increasing output, OPEC+ aims to maintain its position as a dominant force in the global oil market.