OPEC+ Set to Weigh Further Oil Output Hike

The global oil market is once again on edge as Saudi Arabia, Russia, and six other key OPEC+ producers prepare to meet on Saturday to discuss a potential increase in crude output for August. The virtual gathering comes amid growing signals that the influential oil alliance is moving away from price defense and toward a more aggressive push to reclaim market share.

Since 2022, OPEC+ — the coalition of the 12-member Organization of the Petroleum Exporting Countries (OPEC) and its allies — had been implementing deep production cuts in an effort to support oil prices. But that strategy took a dramatic turn earlier this year when eight core members, led by Saudi Arabia, shocked global markets with a surprise decision to raise output beginning in May.

Known as the “Voluntary Eight” or “V8” — a group including Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman — these nations appear set to approve yet another coordinated production hike. Industry analysts anticipate a new increase of around 411,000 barrels per day (bpd) for August, maintaining the same pace seen over the past three months.

The move marks a significant pivot in strategy. “The group has placed an increased focus on regaining market shares over price stability,” said Ole Hansen, a commodities analyst at Saxo Bank. The shift has already contributed to a sharp decline in oil prices, which have been fluctuating between $65 and $70 per barrel — a far cry from the triple-digit highs seen just two years ago.

Saturday’s meeting, expected to be held via video conference, will be closely watched by global markets, energy firms, and policymakers. With economic growth slowing in major economies and alternative energy pressures mounting, OPEC+ is clearly recalibrating its long-term strategy.

For now, all eyes remain on the “V8” and their next move — one that could once again ripple through energy markets and impact everything from fuel prices at the pump to global inflation trends.

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