Saudi Arabia, Russia, and six other key members of the OPEC+ alliance have agreed to raise oil production by 411,000 barrels per day (bpd) in July &mdash; matching the increases set for May and June &mdash; according to several sources. The move comes as the group looks to reclaim market share and address past overproduction by certain members.
In an official statement, the group confirmed the planned July increase, which is more than three times the size of the initial hike the alliance had proposed. This marks a continued shift in strategy for the group, which includes both OPEC members and non-OPEC allies such as Russia.
In recent years, the so-called &ldquo;Voluntary Eight&rdquo; &mdash; or V8 &mdash; within OPEC+ had agreed to daily production cuts totalling 2.2 million barrels in an effort to stabilise oil prices. However, beginning in early 2025, the alliance reversed course, opting for a phased increase in output that has since been accelerated.
These decisions have contributed to a decline in global oil prices, which in April fell to around $60 per barrel &mdash; the lowest level in four years. Prices closed just below $63 on Friday. The downturn was also influenced by market concerns over potential global economic weakness, fuelled in part by U.S. President Donald Trump&rsquo;s tariffs.
Despite the overall increase in supply, some members of the group have been asked to limit their output in the short term to offset previous overproduction. Kazakhstan, for example, announced on Thursday that it would not reduce its production, sparking speculation that OPEC+ might implement a larger-than-planned output hike in July.
The current round of supply increases began in April and signals a broader strategic pivot for the group. While output rises, the demand outlook remains moderate. A Reuters poll of analysts forecast global oil demand to grow by an average of 775,000 bpd in 2025. The International Energy Agency (IEA) offered a slightly more conservative estimate of 740,000 bpd in its latest outlook.
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OPEC+ to raise July oil output by 411,000 bpd, matching May and June to regain market share

OPEC+ Eyes Fresh Oil Hike: Impact on Markets

OPEC+ to raise July oil output by 411,000 bpd, matching May and June to regain market share

June 1, 2025 | 09:36 IST