Market Speak: OPEC+ agrees to raise August output while maintaining flexible supply strategy

OPEC+ has agreed to raise crude oil production by 188,000 barrels per day (bpd) in August 2026, extending its gradual unwinding of the voluntary production cuts introduced in 2023. The decision was reached during a virtual meeting of seven participating members?Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman?as the group assessed global oil market conditions and the demand outlook. The alliance emphasized that the production increase is part of its broader strategy to restore supply in a measured and cautious manner while safeguarding market stability. OPEC+ reiterated that the pace of the output restoration remains fully flexible and can be accelerated, paused or even reversed should market conditions deteriorate or volatility re-emerge. This approach reflects the group's commitment to balancing global supply with demand while responding swiftly to changing economic and geopolitical developments. The participating countries also reaffirmed their commitment to full compliance with the Declaration of Cooperation and pledged to compensate for any excess production recorded since January 2024. The group noted that the gradual production increase provides an opportunity for members to accelerate their compensation plans while maintaining overall discipline in output targets. Looking ahead, OPEC+ will continue to review oil market conditions, production conformity and compensation efforts through its monthly meetings. The next gathering of the participating countries is scheduled for 2 August 2026, when policymakers will reassess market fundamentals and determine the appropriate course for future production levels.

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