OPEC+ announces sharp increase in July oil production

VIENNA: Saudi Arabia, Russia and six other key OPEC+ members announced on Saturday a huge increase in crude production for July.They will produce an additional 411,000 barrels a day — the same target set for May and then June — according to a statement, which is more than three times greater than the group had previously planned.In recent years, the group within OPEC+ that is known as the “Voluntary Eight”, or V8, had agreed to daily reductions of 2.2 million barrels with the aim of boosting prices.But in early 2025, OPEC+ members decided on the gradual output increase and subsequently began to accelerate the pace.The moves have resulted in oil prices plummeting to around $60 per barrel, the lowest level in four years. OPEC+ “struck three times: (the output target for) May was a warning, June a confirmation and July a warning shot”, Rystad Energy analyst Jorge Leon told AFP.“The scale of the production increase reflects more than just internal supply dynamics,” he said. “This is a strategic adjustment with geopolitical aims: Saudi Arabia seems to be bowing to Donald Trump’s requests.” Shortly after taking office, the US president called on Riyadh to ramp up production in order to bring down oil prices, meaning cheaper prices at the pump for American consumers.