OPEC+: Return of 1.65M bd subject to market conditions

OPEC+: Return of 1.65M bd subject to market conditions

In a significant move aimed at addressing market conditions, the OPEC+ alliance has agreed to increase oil production by 1.65 million barrels per day (bpd), effective from September 2025 [1]. This decision comes amidst growing concerns about a potential supply glut and the need to stabilize oil prices, which have been volatile in recent months.

The meeting, held on Sunday, saw OPEC+ members review the current market conditions and adjust their production quotas accordingly. The group has been under pressure to balance supply and demand in the wake of higher US inventories and potential increases in production from OPEC+ members.

Iraqi Prime Minister Mohammed Shia Al Sudani, who recently emphasized the need for a review of Iraq's OPEC-approved export quota, welcomed the decision. He highlighted that increased production would align better with Iraq's vast oil reserves and financial needs, given that oil revenue makes up over 90% of the country's budget [2].

The decision to increase production by 1.65 million bpd follows a series of adjustments made by OPEC+ in recent months. In August, the group agreed to an increase of 547,000 bpd, and in May and June, it raised production by 411,000 bpd. These adjustments were aimed at addressing the global energy market's dynamics and ensuring stability in oil prices.

The market reaction to the OPEC+ decision was mixed. While some analysts welcomed the move as a means to stabilize prices, others expressed concern about the potential for a supply glut, which could lead to a further decrease in prices. The benchmark oil price, Brent, was down 0.27% to $66.81 per barrel on Friday, reflecting the market's anticipation of the OPEC+ decision [3].

The International Energy Agency (IEA) has raised its forecast for oil supply growth this year after the decision by OPEC+ to increase production, while also lowering its demand forecast due to lackluster demand across major economies [4].

As the global energy market continues to evolve, OPEC+ will need to closely monitor market conditions and adjust production quotas accordingly to maintain stability and meet the needs of both producers and consumers.

References:
[1] https://www.thenationalnews.com/news/mena/2025/09/06/iraqi-prime-minister-suggests-opec-adjustment-to-countrys-oil-export-quota/
[2] https://www.thenationalnews.com/news/mena/2025/09/06/iraqi-prime-minister-suggests-opec-adjustment-to-countrys-oil-export-quota/
[3] https://www.thenationalnews.com/news/mena/2025/09/06/iraqi-prime-minister-suggests-opec-adjustment-to-countrys-oil-export-quota/
[4] https://www.thenationalnews.com/news/mena/2025/09/06/iraqi-prime-minister-suggests-opec-adjustment-to-countrys-oil-export-quota/