OPEC+ to Boost Oil Production by 137,000 Barrels Per Day in December
Eight countries within the OPEC+ group will collectively increase oil production by 137,000 barrels per day starting in December, according to a recent statement. The nations – Saudi Arabia,Russia,iraq,the United Arab Emirates,Kuwait,Kazakhstan,Algeria,and Oman – had previously agreed to voluntary production adjustments.
This adjustment builds upon a broader trend of increased output since April 2023, when the group began to unwind earlier cuts. In total, producers have agreed to a production increase exceeding 2.7 million barrels per day, representing roughly 2.5 percent of global demand.
Of the eight countries increasing production, five are members of OPEC, while Russia, Kazakhstan, and Oman are part of the expanded OPEC+ group. The decision comes after a period of production cuts spanning several years, peaking in March at 5.85 million barrels per day. These cuts comprised voluntary reductions of 2.2 million barrels per day, 1.65 million barrels per day from the eight participating countries, and an additional two million barrels per day across the entire group.
The eight producers initially aimed to fully reverse the 2.2 million barrel per day cuts by the end of September and have since begun to remove the 1.65 million barrel per day adjustments.
Oil prices experienced a dip to a five-month low of around $60 a barrel in October amid concerns of a potential oil glut, but have since partially recovered to approximately $65 a barrel, influenced by sanctions against Russia and optimism surrounding US trade discussions.
