The eight OPEC+ countries that voluntarily cut oil production are set to increase output by 411,000 barrels per day (bpd) in July—matching the production hikes of the past two months. This step aligns with their original three-month plan to gradually phase out voluntary supply cuts.
The countries involved in the voluntary adjustments include Russia, Saudi Arabia, Iraq, the UAE, Kazakhstan, Algeria, Oman, and Kuwait. Since the beginning of 2024, this group has collectively reduced production by 2.2 million bpd as part of efforts to stabilize the market.
Production began ramping up in April. While the group initially approved a modest increase of 138,000 bpd for that month, they later agreed to accelerate the pace for May, June, and July—adding 411,000 bpd each month.
However, these increases do not account for additional production cuts that seven of the eight countries are obligated to make to compensate for overproduction during the voluntary reduction period. Algeria is the only member of the group that fully met its initial reduction targets.
According to TASS calculations, after factoring in the required compensatory cuts—which amount to 455,000 bpd in July—the actual permitted production increase for the group could be closer to 386,000 bpd.
The eight countries are expected to review their production plans for August during an online meeting scheduled for July 6.
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Based on TASS materials