(Bloomberg) — OPEC agreed on another bumper oil production increase for September, completing its current tranche of supply revival one year early as the group moves to reclaim its share of global crude markets.
Saudi Arabia and its partners agreed on a video conference to add about 548,000 barrels a day next month, delegates said. This completes the reversal of a 2.2 million-barrel cutback made by eight members in 2023, and also includes an extra allowance being phased by the United Arab Emirates.
Another layer of about 1.66-million barrels of halted output will be reviewed by the end of December, one of the delegates said.
The latest hike caps a dramatic shift from the Organization of the Petroleum Exporting Countries and its partners from defending prices to opening the taps, which has helped put a lid on oil and gasoline futures in the face of geopolitical tensions and strong seasonal demand, offering some relief for drivers and a win for US President Donald Trump. The accelerated increases have helped fuel expectations for a global supply surplus later in the year.
Sunday’s decision, confirming an agreement in principle first reported on Saturday by Bloomberg, also comes as President Trump intensifies diplomatic pressure on OPEC co-leader Russia. Trump has threatened Moscow with secondary tariffs on its oil customers unless there is a swift ceasefire in the war in Ukraine.
A disruption to Russian flows would threaten to drive up crude prices and run counter to Trump’s repeated call for cheaper oil, as he pushes the Federal Reserve to lower interest rates.
Russia’s Deputy Prime Minister Alexander Novak made a rare visit to Riyadh on Thursday to discuss “cooperation between the countries” with Saudi Arabian Energy Minister Prince Abdulaziz bin Salman. The two countries have jointly led OPEC since its creation almost a decade ago.
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