OPEC+ to Complete Unwinding of Oil Output Cuts With Big September Hike

Cat:

Related stories

Shettima Says Nigeria Not Interested in Pursuing Nuclear Weapons

By Abiola Olawale Vice President Kashim Shettima has reiterated Nigeria’s...

[VIDEO] First Class journalist-Scholar, Reuben Abati Blasts Wike Over Church Thanksgiving on Completed Projects

By Abiola Olawale Veteran international journalist, lawyer and first class...

Iranian President Accuses Israel of Failed Assassination Plot

By Abiola Olawale Iranian President Masoud Pezeshkian has made a...

2027: Yobe Swings as Adamu Waziri, PDP’s BoT member Dumps Party for ADC

Slams Leadership’s Credibility Crisis By Abiola Olawale In another blow...
  • OPEC+ plans to fully unwind its 2.2 million bpd production cuts by September, much faster than originally scheduled.
  • The group’s surprise production increases aim to regain market share and align with U.S. calls for lower energy prices.
  • Analysts warn of potential oil oversupply and declining U.S. shale production if oil prices remain at or below $60 per barrel.

The eight OPEC+ producers withholding supply to the market are set to complete the unwinding of their 2.2 million barrels per day (bpd) production cuts from 2023 with another supersized output hike of 550,000 bpd for September, five sources with knowledge of the alliance’s discussions told Reuters on Monday.

Since starting to unwind the cuts earlier this year, OPEC+ producers Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman made a small output increase of 138,000 bpd in April and then began to aggressively raise production quotas by 411,000 bpd for each of May, June, and July.

At this weekend’s meeting, the OPEC+ group caught the market by surprise – once again – by announcing a larger-than-expected output hike of 548,000 bpd for August. This exceeded market expectations of another routine 411,000 bpd hike, while the move set the alliance on track to fully unwind 2.2 million bpd cuts nearly a year ahead of schedule.

Another production boost of 550,000 bpd for September would allow OPEC+ to unwind all the 2.2 million bpd cuts, as well as complete the 300,000 bpd output increase from the UAE as the Gulf producer last year argued for and received a higher quota due to the ramp-up of its production capacity.

OPEC+ has an additional 3.6 million bpd in active cuts spread across members, including voluntary reductions from major producers. These expire at the end of 2026.

The accelerated unwinding of the 2.2 million bpd cuts is a sign that OPEC+ is going after market share and pleasing U.S. President Donald Trump, who has campaigned on lower energy prices and has called for lower energy prices and higher OPEC output since taking office early this year.

However, with a market glut expected after the peak summer season, oil prices are likely to remain depressed, analysts say. This is not good news for U.S. shale producers, the majority of which said in the latest Dallas Fed Energy Survey out last week that their oil production would decrease slightly from June 2025 to June 2026 if the WTI price remained at $60 per barrel.

At WTI prices at $50 per barrel, 46 percent of executives expect their firms’ oil production would decrease significantly from June 2025 to June 2026, and another 42 percent anticipate their firms’ oil production would decrease slightly. The most selected response among executives at large E&P firms was “decrease slightly,” while among executives at small E&P firms it was “decrease significantly.”

Credit: Oilprice.com

The New Diplomat
The New Diplomathttps://newdiplomatng.com/
At The New Diplomat, we stand for ethical journalism, press freedom, accountable Republic, and gender equity. That is why at The New Diplomat, we are committed to speaking truth to power, fostering a robust community of responsible journalism, and using high-quality polls, data, and surveys to engage the public with compelling narratives about political, business, socio-economic, environmental, and situational dynamics in Nigeria, Africa, and globally.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

NDN
Latest News
[VIDEO] First Class journalist-Scholar, Reuben Abati Blasts Wike Over Church Thanksgiving on Completed ProjectsIranian President Accuses Israel of Failed Assassination Plot2027: Yobe Swings as Adamu Waziri, PDP's BoT member Dumps Party for ADCSaudi Arabia Raises Oil PricesGrass Cutting! Ex-SGF Babachir Lawal Dumps APC, Heads to ADC Ahead 2027Drama in Kano, as 58 Inmates Seat for 2025 NECO SSCESword of Democles! Trump’s 10% Tariff Threat Dangles Over Nigeria, Others Over BRICS PartnershipMakinde Mourns as Olubadan’s Passes Away at 90Concerns Soars as Nigeria Unbelievably Lags Behind Libya, Gabon, Equatorial Guinea in World Bank’s 2025 Income Rankings2027: Political Intrigues Escalate as Obi Affirms Presidential Ambition, Declines VP SlotOjuri and Her One-Upper Friend: A Story About Listening, Healing, and Guarding Your PeaceRanked: The Best Countries for Work-Life Balance in 2025Top Indian Refiner Sees Oil Prices Stabilizing in the $65-70 RangeWhat can Nigeria learn from China’s electricity revolution?"Ringo Starr Turns 85: A Global Call for Peace and Love"
X whatsapp
Skip to toolbar