OPEC+ agrees to boost oil production starting September
OPEC and its allies (OPEC+) just agreed to ramp up oil production by 548,000 barrels a day starting September 2023.
This move is part of undoing a big supply cut they made back in 2023.
For the UAE, the increase will roll out gradually and gets the final nod in an upcoming virtual meeting.
Oil prices remain around $70 per barrel
This marks a shift for OPEC+, moving from holding back supply to trying to win back market share—mostly because of global tensions and changing demand.
Even with these increases, oil prices are still hovering around $70 per barrel as everyone waits to see if there'll be too much supply while economies slow down.
Saudi Arabia and Russia are leading the discussions
Saudi Arabia and Russia are leading these talks. Russia's Deputy Prime Minister even went to Riyadh this month for some face time on cooperation.
Experts think after September's bump, OPEC+ might pause further increases since over 1.6 million barrels per day will stay offline until the end of 2026—but that could change if markets get shaky.