MARKET NEWS

OPEC+ on Sunday agreed to boost oil production by 547,000 barrels per day from September in a move that could further reduce gas prices this year.

The announcement means that the group has fully reversed previous cuts to oil production and is the latest development in a series of production hikes.

Eight member countries held a virtual meeting ahead of the announcement amid rising pressure from the US on India to curb its purchases of Russian oil.

In a statement following the meeting, they noted that "the phase-out of the additional voluntary production adjustments may be paused or reversed subject to evolving market conditions."

They cited strong economic conditions and low oil inventories as the main reasons for the decision to boost production.

The group had been curtailing production of oil for several years to support oil prices, but changed course earlier this year after calls by US President Donald Trump to ramp up production.

OPEC+ includes ten non-OPEC countries like Russia and Kazakhstan as well as all OPEC members. The primary goal of both organisations is to manage global oil supply and stabilise prices.

Saudi Arabia holds significant influence in OPEC+ as the dominant member of the OPEC producers’ cartel, and Russia is the leading non-OPEC member in the 22-country alliance.

The decision comes amid increasing US pressure to bring Moscow to the negotiating table to end their ongoing, full-scale invasion of Ukraine.

OPEC+ is set to meet again on September 7.