The OPEC+ alliance is reportedly weighing a more substantial oil production boost for July, potentially exceeding the previous monthly increases of 411,000 barrels per day (bpd) seen in May and June, according to a Reuters report released Friday.
While the alliance had initially agreed on gradual increases, eight member nations have already accelerated their output, raising concerns about the impact on global oil prices. These countries have been producing above agreed levels, exerting additional downward pressure on the market. In response, core members Saudi Arabia and Russia are said to be focusing on restoring discipline within the group and reclaiming market share.
The same eight countries are now expected to agree on another 411,000 bpd increase for July. However, the possibility of an even larger hike is under consideration, as suggested by two unnamed OPEC+ delegates cited in the Reuters report.
Tensions within the group may be further inflamed by Kazakhstan’s recent stance. On Thursday, the country stated it has “no plans to reduce its oil production,” a declaration that could sway the upcoming negotiations. Analysts believe Kazakhstan’s position may push the broader alliance toward agreeing on a larger-than-anticipated production rise when members convene on Saturday.
As OPEC+ navigates internal disagreements and external market dynamics, the outcome of this meeting could significantly influence global oil supply and price trends in the months ahead.