OPEC+ agrees to raise its oil output by 548,000 barrels per day in August

Reuters reports that OPEC+ has agreed to raise its oil output by another 548,000 barrels per day (bpd) in August. Meanwhile, monthly hikes were 411,000 bpd between May and July and 138,000 bpd in April. The production boost is expected to come from such countries as Saudi Arabia, the UAE, Russia, Oman, Kuwait, Iraq, Kazakhstan, and Algeria.

The group cited steady oil market fundamentals, including low crude inventories, and global economic prospects as reasons for this move. 

Reuters sources say the acceleration in output increases comes amid OPEC+ members Iraq and Kazakhstan exceeding their production targets. Besides, the group intends to expand its market share due to rising competition, including from the US.

With the August hike, OPEC+ is set to produce 1.918 million barrels of oil per day. The alliance will have to raise its crude output by another 280,000 bpd to completely unwind the reduction of 2.2 million bpd. At the same time, other layers of production cuts, amounting to 3.66 million bpd, remain in force. The next OPEC+ meeting will be held on August 3, Reuters says.