OPEC and its allies, collectively known as OPEC+, announced a decision to increase oil production by 548,000 barrels per day (bpd) in August, a higher rate than in July.

In July, OPEC+ countries recorded a 411,000 bpd increase in oil production as part of a plan to gradually ease their latest production restrictions.

The current decision was taken during a virtual meeting at which member countries, including Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman, assessed global market conditions and the outlook, according to a statement on OPEC's website.

The adjustment has been made to take into account "a stable global economic outlook and current healthy market fundamentals reflected in low oil inventories", said the statement, which also noted that the gradual increase may be suspended or reversed depending on the evolution of market conditions.

Originally announced in November 2023, the 2.2 million bpd production cut was put in place for the first quarter of 2024. Since then, the cut has been extended several times, with the latest extension pushing it back to the first quarter of 2025.

Xinhua/gnews.cz - GH