OPEC+ has agreed to increase oil production for September, completing the revival of a halted supply tranche, Bloomberg reported on Saturday.
Citing a delegate, Bloomberg reported that OPEC+ has agreed in principle to ratify the addition of 548,000 barrels a day for the next month when they hold a video conference on Sunday.
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The increase would complete the reversal of a 2.2-million-barrel cutback made by eight members in 2023, and includes an extra allowance being phased in by the United Arab Emirates.
OPEC+ is a coalition of the Organization of the Petroleum Exporting Countries (OPEC) and other oil-producing nations, formed in 2016 to manage oil production and stabilize prices in response to fluctuating market conditions.
With the increase in production, OPEC and its partners continue to move away from its long-standing policy of defending prices, as the group moves to reclaim global market share.
OPEC+ sent oil prices crashing to a four-year low in early April when it announced a sudden acceleration in its plan to unwind the current tranche of cuts.
With the end of the 2.2-million-barrel revival, attention will shift to the next layer of halted output, which amounts to 1.66 million barrels, and is formally scheduled to remain offline until the end of 2026.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
