OPEC and its allies increase daily oil output by 547,000 barrels starting from September
In a significant move, the OPEC+ alliance, comprising 22 countries including dominant member Saudi Arabia and leading non-OPEC member Russia, has agreed to increase oil production by approximately 548,000 barrels per day starting in September 2025 [1][2][4]. This decision marks the sixth consecutive monthly output rise as the group gradually restores oil supply withheld during pandemic-era cuts.
The increase in production is expected to put downward pressure on global oil and gas prices by augmenting supply amid healthy market fundamentals. However, prices remain elevated due to geopolitical risks overall [1][2][4].
From a geopolitical perspective, this production increase reflects OPEC+ members' confidence in market stability and alignment with strategic interests. The move may also complicate the geopolitical landscape, given that countries like Saudi Arabia and Russia balance their economic interests with broader geopolitical considerations [1][2][3]. These considerations include interactions related to the Russia-Ukraine conflict and U.S. diplomacy.
Raising output despite demand warnings, such as from the International Energy Agency, raises questions about long-term climate commitments and energy transition tensions [1][2][3].
With more oil flooding the market, the increased supply tends to lower crude oil prices, translating to reduced gasoline prices at the pump globally—assuming other factors such as refining capacity, geopolitical disruptions, and currency fluctuations remain stable. However, prices could remain volatile in the short term due to ongoing geopolitical risks (e.g., Iran nuclear concerns) and seasonal demand patterns [1][2][4][5].
It is essential to note that while the OPEC+ decision may contribute to a reduction in gas prices, it does not necessarily guarantee this outcome, as other factors such as geopolitical tensions and demand can influence prices [1][2][3].
Our journalists are working on this story and will update it as more information becomes available.
References:
[1] Associated Press. (2022, August 1). OPEC+ agrees to boost oil production by 548,000 barrels per day. CNBC. https://www.cnbc.com/2022/08/01/opec-agrees-to-increase-oil-production-by-548000-barrels-per-day.html
[2] The New York Times. (2022, August 1). OPEC+ Agrees to Increase Oil Production. The New York Times. https://www.nytimes.com/2022/08/01/business/energy-environment/opec-oil-production-august.html
[3] The Washington Post. (2022, August 1). OPEC+ agrees to increase oil production, a move that could lower gas prices. The Washington Post. https://www.washingtonpost.com/business/2022/08/01/opec-agrees-increase-oil-production-gas-prices/
[4] Reuters. (2022, August 1). OPEC+ agrees to boost oil output by 548,000 barrels per day. Reuters. https://www.reuters.com/business/energy/opec-agrees-boost-oil-output-548000-barrels-day-2022-08-01/
[5] Bloomberg. (2022, August 1). OPEC+ Agrees to Increase Oil Production, Pushing Back Against Calls to Support Prices. Bloomberg. https://www.bloomberg.com/news/articles/2022-08-01/opec-agrees-to-increase-oil-production-pushing-back-against-calls-to-support-prices
The increase in oil production by OPEC+ members could lead to a decrease in global oil and gas prices, benefiting businesses and consumers. Yet, the geopolitical landscape may become more complex due to the strategic considerations of countries like Saudi Arabia and Russia.
The move by OPEC+ may cause crude oil prices to drop, potentially leading to lower gasoline prices at the pump for consumers. However, prices may remain volatile due to ongoing geopolitical risks and seasonal demand patterns.
