Oil prices slid on Monday after OPEC+, a group of oil-producing countries, agreed to increase production by 547,000 barrels per day in September. This move reverses the largest tranche of output cuts made by the group and aims to regain market share amid concerns over potential supply disruptions linked to Russia.
The decision comes as US pressure mounts on India to halt Russian oil purchases, part of efforts to bring Moscow to the negotiating table for a peace deal with Ukraine. President Donald Trump wants this deal to be reached by August 8.
OPEC+ cited a healthy economy and low stocks as reasons behind its decision. Market analysts believe that higher prices have given the group confidence in market fundamentals. However, another layer of output cuts may be considered on September 7, totaling around 1.65 million barrels per day.
The group, which pumps about half of the world’s oil, had been curtailing production for several years to support oil prices. The decision to increase production is part of a series of accelerated hikes made by the group in recent months.
Source: https://www.cnbc.com/2025/08/03/opec-makes-another-large-oil-output-hike-in-market-share-push-.html