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The first meeting since Israel, the US began to accelerate OPEC+’s power hike in May, launching an attack on Iran.
(Reuters) – OPEC+ agreed on Saturday to raise 548,000 barrels per day in August, bringing production up at the first meeting after oil prices jumped and subsequently retreated following Israeli and US attacks on Iran.
The group, which pumps around half of the world’s oil, has been cutting production since 2022 to support the market. However, this year they have reversed courses to regain market share, demanding more group pumps to help US President Donald Trump lower gas prices.
Production boost comes from eight members of the group from Saudi Arabia, Russia, the United Arab Emirates, Kuwait, Oman, Iraq, Kazakhstan and Algeria. The eight began unraveling the latest cut layer of 2.2 million bpd in April.
The August increase represents a jump from the monthly increase of 411,000 bpd OPEC+ approved in April, June and July, and 138,000 bpd for April.
OPEC+ cited the foundations of a stable global economic outlook and healthy markets, including low oil inventory, as reasons to release more oil.
The acceleration came after some OPEC+ members, such as Kazakhstan and Iraq, were generated beyond their targets, angering others who were sticking to the cut, sources said.
Kazakh’s output returned to growth last month, coinciding with the highest ever.
OPEC+, which grouped together Russian-led oil exporters and allies, wants to increase its market share amid growing supply from rival producers like the US, sources say.
With the increase in August, OPEC+ will release 1.918 billion bpd from April, with just 280,000 bpd being released from the 2.2 million bpd cut. In addition to that, OPEC+ allowed the UAE to increase the output by 300,000 bpd.
This group still has a layer of other cuts worth 3.66 million bpd. A group of eight OPEC+ members will meet next on August 3rd.
Report by OPEC Newsroom. Written by Dmitry Zhdannikov, edited by Mark Potter
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