OPEC+ Decided To Further Increase Oil Production From October
- 8.09.2025, 11:35
The cartel countries want to get a bigger share of the market.
OPEC+ countries have agreed to increase oil production from October as a number of the group's producers, primarily Saudi Arabia, seek to regain market share. Although the pace of production increases will be slower than in previous months, OPEC+ has moved ahead of schedule to cancel the second block of curbs imposed in recent years to support prices, The Moscow Times writes.
At the time of the coronavirus pandemic, the cartel and its partners cut production in two blocks - by 1.65 million and 2.2 million barrels per day. The second block of cuts has already been completely canceled: an accelerated increase in production from April through September this year brought that volume back to the market a year ahead of the original target date. OPEC+ said in a statement following their meeting on Sunday that countries will now return barrels from a block of 1.65 million barrels. The first tranche of the production increase is scheduled for October at 137,000 bpd.
OPEC+ did not indicate how soon or at what pace it now intends to increase quotas. Representatives of the countries in private conversations provided more specific information, Bloomberg reported: according to them, the supply will be added monthly until September next year. The process was originally expected to stretch to the end of 2026.
Oil prices by the end of last week had fallen 12% since the start of the year, including about 5% in the last three trading days, when reports emerged that OPEC+ would decide to increase production again at Sunday's meeting. But in Monday morning trading, Brent quotes rose 1.4% to $66.4 a barrel. This is due to the fact that, although the cartel countries decided to continue increasing production, the scale of the new move was smaller than in previous months, notes Reuters. In October, they want to add 137,000 barrels per day, while in August-September quotas were raised by about 555,000 barrels, and in June-July - by 411,000 barrels.
By the end of the year, the International Energy Agency predicts a significant increase in the global market surplus (about 2 million barrels per day). Demand will suffer due to the slowdown in the global economy, while supply is being increased by both OPEC and non-cartel producers. The agency estimates that the average daily supply this year will increase by 2.5 million barrels, while demand will increase by only 0.68 million.