The eight major oil-producing countries will continue to increase production in September
author: Ann
2025-08-08
Representatives from Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman recently held a virtual meeting to discuss the international oil market situation and outlook.
The statement stated that, given the current solid market fundamentals and low oil inventories, the eight countries decided to adjust production. At the same time, the eight countries will flexibly adjust the pace of production increases based on market conditions to maintain oil market stability. These countries increased production by an average of 548,000 barrels per day in August.
The eight countries announced voluntary production cuts of 2.2 million barrels per day in November 2023, which were subsequently extended several times, including in December 2024 until the end of March 2025. The industry believes that the oil-producing countries maintained their production cuts due to concerns about the rise of electric vehicles and sluggish oil demand growth.
The Financial Times reported that this production increase marks a complete reversal of the major oil-producing countries' strategy of restricting supply to support oil prices over the past two years.
In a report, analysts at ING Bank said that OPEC's decision to increase production in September was not surprising. The market has largely priced in the increase in supply, marking the end of OPEC's voluntary additional production cuts of 2.2 million barrels per day. As the summer period of strong demand draws to a close and inventories begin to rise, OPEC and other major oil-producing countries are likely to end their production increases.
Market participants believe that despite geopolitical tensions and strong seasonal demand, the production increase will help contain oil and gasoline futures prices and ease cost pressures on transportation operators.
However, oil-producing countries still retain two additional production cuts available until the end of 2026: a voluntary cut of 1.65 million barrels per day by eight member countries and a joint cut of 2 million barrels per day by all members.
The statement stated that, given the current solid market fundamentals and low oil inventories, the eight countries decided to adjust production. At the same time, the eight countries will flexibly adjust the pace of production increases based on market conditions to maintain oil market stability. These countries increased production by an average of 548,000 barrels per day in August.
The eight countries announced voluntary production cuts of 2.2 million barrels per day in November 2023, which were subsequently extended several times, including in December 2024 until the end of March 2025. The industry believes that the oil-producing countries maintained their production cuts due to concerns about the rise of electric vehicles and sluggish oil demand growth.
The Financial Times reported that this production increase marks a complete reversal of the major oil-producing countries' strategy of restricting supply to support oil prices over the past two years.
In a report, analysts at ING Bank said that OPEC's decision to increase production in September was not surprising. The market has largely priced in the increase in supply, marking the end of OPEC's voluntary additional production cuts of 2.2 million barrels per day. As the summer period of strong demand draws to a close and inventories begin to rise, OPEC and other major oil-producing countries are likely to end their production increases.
Market participants believe that despite geopolitical tensions and strong seasonal demand, the production increase will help contain oil and gasoline futures prices and ease cost pressures on transportation operators.
However, oil-producing countries still retain two additional production cuts available until the end of 2026: a voluntary cut of 1.65 million barrels per day by eight member countries and a joint cut of 2 million barrels per day by all members.
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