According to Yonhap News Agency, Reuters, and AFP, OPEC+ members held a video conference on July 5 and agreed to raise oil production by 188,000 barrels per day in August compared to July.
The seven countries stated in a joint statement, "As part of our collective efforts to stabilize the oil market, we have decided to adjust production by 188,000 barrels per day in relation to the voluntary additional cuts announced in April 2023."
OPEC+ had implemented voluntary production cuts twice in 2023, but has gradually increased output since last year. After halting production increases in the first quarter of this year, the group decided to raise output for four consecutive months starting in April due to disruptions in the Strait of Hormuz, a key oil trade route, following the outbreak of war in Iran. This decision was made in response to soaring international oil prices, aiming to stabilize the market by increasing monthly quotas.
However, following the conflict between the U.S. and Iran, actual oil production has decreased as export routes have been blocked. According to OPEC data, production from Saudi Arabia, Iraq, and Kuwait fell by 600,000 barrels per day from the first quarter of this year until May.
Nonetheless, some foreign media, including AFP, have pointed out that if this trend of increasing production continues, there could be an oversupply situation next year. As countries begin to replenish oil reserves depleted during the closure of the Strait of Hormuz, they may temporarily absorb the increased supply, but this could lead to downward pressure on prices due to rising production levels in the future.
* This article has been translated by AI.
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