Eight members of the OPEC+ alliance of oil-exporting countries say they will boost production by 548,000 barrels per day in August, in a move that could further reduce gas prices this year.
The group, which includes Saudi Arabia and Russia, made the decision during a virtual meeting Saturday. They cited a “steady global economic outlook” and low oil inventories.
Oil prices spiked sharply last month during the bloody 12-day conflict between Israel and Iran, but then tumbled after the U.S. helped broker a peace deal, following airstrikes on three of Iran’s key nuclear sites.
Saudi Arabia holds significant influence in OPEC+ as the dominant member of the OPEC producers’ cartel, while Russia is the leading non-OPEC member in the 22-country alliance.
Along with Saudi Arabia and Russia, the group that met Saturday included Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman.
A statement said the new measures align with a December decision to delay production increases at that time, but to gradually raise output by 2.2 million barrels per day over an 18-month period starting in April and ending in fall 2026. The delay reflected weaker-than-expected demand and rising production from non-allied countries.