Opec+ has agreed to increase its oil production by 547,000 barrels per day for September, as the alliance of oil producers led by Saudi Arabia and Russia continues to unwind voluntary cuts introduced during the pandemic.
"The eight participating countries will implement a production adjustment of 547 thousand barrels per day in September 2025 from August 2025 required production level," the Organisation of the Petroleum Exporting Countries (Opec) stated in a press release on Sunday.
The decision marks the sixth month in a row the group has raised output as it gradually restores 2.2 million barrels a day of supply that was withheld from the market.
The alliance previously approved monthly rises of 138,000 barrels a day in April and 411,000 barrels a day for May, June and July.
Last month, Opec+ announced a larger-than-expected increase of 548,000 barrels a day for August, accelerating the pace of its phased supply return.
Policy and market fundamentals
Since December 2024, Opec+ has maintained that it would gradually and flexibly unwind its voluntary cuts beginning in April 2025.
In past statements, the group cited a steady global economic outlook, healthy market fundamentals and low oil inventories as reasons for restoring output.
Opec+ has reiterated that future increases can be paused or reversed if market conditions deteriorate, to maintain oil market stability.
The return of production cuts – originally agreed by eight Opec+ members including Saudi Arabia, Russia, the UAE and Iraq in November 2023 – had been pushed back several times amid concerns about growing supply in the market. The next gathering will take place on September 7.
Added pressures
Oil prices dropped on Friday after a weaker-than-expected US jobs report and tariffs announcements weighed on prospects for energy demand growth.
The Labour Department employment report for July put employment growth at a much lower level than expected, at 73,000 jobs. Markets had expected a gain of 100,000.
Brent, the benchmark for two-thirds of the world's oil, dropped 2.83 per cent to $69.67 a barrel at the market close on Friday, while West Texas Intermediate, the gauge that tracks US crude, fell 2.79 per cent to settle at $67.33 a barrel on Friday, its biggest drop in a single day since June 24.
Recent geopolitical tensions have added to oil market volatility this year. A 12-day conflict between Israel and Iran earlier this year drove oil prices up by more than 13 per cent before they retreated below pre-war levels.
The alliance has maintained its commitment to supporting market stability as it continues to restore its supply gradually.
