The OPEC+ member countries have agreed to increase oil production by 547,000 barrels per day in September. This decision was prompted by concerns over potential supply disruptions from the Russian Federation, as well as increased pressure from the US on India to cease purchases of Russian oil.
This is reported by Finway
Reasons for OPEC+ Policy Change
In recent years, OPEC+ has adhered to a policy of production cuts, aiming to stabilize oil prices in the global market. However, in 2025, the organization changed its approach, seeking to regain its market share. One of the factors behind this decision was US President Donald Trump’s calls for increased production, as well as his statement about the possibility of imposing 100% tariffs on countries purchasing Russian oil if Moscow does not reach a peace agreement with Ukraine.
“Previously, Trump threatened to impose 100% tariffs on countries buying Russian oil if Moscow does not achieve a peace agreement with Ukraine.”
Market Reaction to Oil Prices
Following the announcement of increased production, oil prices noticeably dropped. On August 4, Brent crude futures fell by $0.40, reaching $69.27 per barrel. US WTI crude dropped by $0.37, settling at $66.96 per barrel. By the end of last Friday, both benchmarks had lost approximately two dollars in value.