OPEC+ Increases Oil Output by 548,000 Barrels Daily in August

OPEC+ has decided to accelerate its oil production increases, agreeing to raise output by 548,000 barrels per day in August, surpassing the previously planned increase of 411,000 barrels. This move marks an effort led by Saudi Arabia to regain market share by rapidly restoring idled capacity and shifting from years of supply restraint to a more aggressive production strategy. The decision reflects confidence in a steady global economic outlook and low oil inventories, with demand expected to strengthen during the northern hemisphere summer. However, this accelerated increase could contribute to a supply surplus later in the year, potentially pushing prices below $60 per barrel. Internal tensions remain within OPEC+ due to some members exceeding quotas, challenging group cohesion as it navigates geopolitical and market pressures. The next meeting is scheduled for early August to reassess production plans amid these dynamics.