 OPEC+ Boosts Output by 547,000 Bpd Starting September 2025, Ending 2-Year Cut PolicyProduction hike signals major policy shift and reshapes global oil market dynamics amid geopolitical concerns.
By: Titrsanat News Agency The decision was made during OPEC+'s recent Sunday meeting. It raises production to the highest level since 2023 and ends the voluntary reduction of 2.2 million bpd initiated in January 2024 by eight member states, including Saudi Arabia, Iraq, and the UAE. Initial cuts were in response to weakening demand due to the rise of electric vehicles and slow growth in China. However, they failed to stop the price drop and led to tensions, as non-OPEC countries like the U.S., Brazil, and Canada increased their output. In December 2024, OPEC+ announced it would phase out the cuts, but production returned faster than expected. The UAE alone received a 300,000 bpd increase. This raised concerns about potential oversupply during winter. Despite the surge, strong seasonal demand has helped absorb the extra oil. Brent crude, which had fallen below $60, has now rebounded to $69, influenced by geopolitical tensions, such as the Iran-Israel conflict, and U.S. economic developments. OPEC+ still maintains key cuts: 1.65 million bpd voluntarily by eight members, and 2 million bpd by all members until end of 2026. The July meeting in Vienna was marked by caution, as analysts await further policy directions. Experts believe lower prices may pressure non-OPEC producers, especially U.S. shale. Rystad Energy forecasts non-OPEC growth will slow to 1.4 million bpd in 2025 and just 91,000 bpd by 2027. Barclays Bank also believes OPEC could regain pricing power using its spare capacity. <b>Read the original Persian report:</b> <a href="https://titrsanat.ir/? End
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