London: Volunteer eight (V8) – Saudi Arabia, United Arab Emirates, Oman, Kuwait, Iraq, Kazakhstan, Algeria and Russia, announced on Sunday that they would increase oil production by 547,000 barrels per day in a movement that analysts say it aims to recover the market participation of Amid Amid Riebre.
As currently produced around 41 to 42 million barrels per day, the increase would be approximately 1.5 percent, although analysts believe with the Brent reference oil that is currently sold to approximately $ 70 per barrel, it is unlikely that there is a great impact on prices.
“The eight participating countries will implement a production adjustment of 547,000 barrels per day in September 2025 since August 2025 required the production level,” said a statement published after a meeting where the increase was agreed.
The eight key producers, who began to increase production in April, affirmed their commitment to market stability in the “current foundations of the healthy oil market,” reads an OPEC statement.
1.5PC of increase that is unlikely that it has a great impact on prices, analysts say.
Oil prices have remained better than observers anticipated in the middle of a strong summer demand and a high geopolitical risk premium, especially due to the conflict between Iran and Israel.
“The OPEC+ has approved the first test: unwind the 2.2 million barrels per day (since April) without strengthening prices or compromising unity,” said Jorge Leon, Rystad Energy analyst. But the next task would be even more difficult: decide if and when to relax the 1.66 million remaining barrels, all while sailing for geopolitical tension and preserves cohesion, Leon said.
Low oil inventories
The subsequent statement said that the decision occurred “in view of a constant global economic perspective and the current foundations of the healthy market, as reflected in low oil inventories.” The OPEC+ countries agreed in December to begin a gradual return of last April of 2.2 million barrels per day of previous production cuts.
The last movement, a year before an initial 18 -month schedule, complexes the relaxed and also provides a section of 300,000 barrels per day specifically granted to the United Arab Emirates.
The statement added that the elimination of the elimination of additional volunteer production adjustments can be stopped or reversed subject to evolutionary market conditions. The eight added that they will hold monthly meetings for a regular review of market conditions. For now, the return of other production cuts will be discussed at the next Ministerial Meeting of the OPEC+ at the end of November, with the 22 members.
OPEC said that the V8 will meet for the first time on September 7.
In an attempt to increase prices, the OPEC+ broader group, which includes the organization of 12 nations of oil export countries (OPEC) and their allies, in recent years agreed three different sections of production cuts, so it amounted to almost six million BPD in total.
Market experts warn that the prognosis is particularly challenging given the uncertainty emanating from the tariff policy of the president of the United States, Donald Trump, and its effects on global trade, as well as its 10 -day deadline for Russia to end the war in Ukraine.
Posted in Dawn, August 4, 2025
