OPEC+ to Boost Oil Production by 548,000 Barrels per Day Amid Stable Economic Outlook

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Image Source: Fayez Nureldine

In a move that could ease global oil prices, eight members of the OPEC+ alliance announced Saturday that they will increase oil production by 548,000 barrels per day starting in August a figure exceeding many analysts' expectations.

The group, which includes Saudi Arabia, Russia, the United Arab Emirates, and Iraq, attributed the decision to what it described as a “steady global economic outlook and healthy market fundamentals.” The increase represents approximately 0.5% of global daily oil production and marks a notable uptick from previous months, during which the group had raised output by 411,000 barrels per day.

Energy analysts say the added supply could contribute to a market environment in the second half of 2025 where supply outpaces demand, potentially pushing prices lower. According to S&P Global Commodity Insights, global supply could exceed demand by 1.25 million barrels per day, leading to further downward pressure on prices.

As of Friday, Brent crude, the global benchmark, was trading around $68 per barrel. S&P forecasts suggest prices could drop to between $50 and $60 per barrel by late 2025 or early 2026. West Texas Intermediate (WTI), the U.S. benchmark, currently priced near $66 per barrel, could fall below $50.

The oil producers emphasized in a statement that the production hike could be “paused or reversed” depending on market fluctuations. The eight countries involved are also in the process of unwinding the 2.2 million barrels per day in voluntary cuts agreed upon two years ago.

Saudi Arabia, which is leading the coordination of this move outside of formal OPEC channels, is seen as responding to mounting pressure from fellow producers like the UAE for greater output. The Kingdom may also be seeking to bolster ties with President Donald Trump, whose administration has prioritized stronger alliances with Middle Eastern oil-producing nations.

Analysts note that the timing of the production increase aligns with the summer driving season and higher electricity demand in oil-producing nations, where crude is burned for power generation factors that could temporarily buoy demand.

Despite recent geopolitical tensions, including a brief conflict between Israel and Iran, markets have remained largely stable, with little disruption to global oil supply. The OPEC+ move is likely to reinforce that stability while helping ease inflationary pressure tied to energy costs.