OPEC+ further raises oil production with modest hike from Nov.

OPEC+ further raises oil production with modest hike from Nov.

OPEC+ has announced a modest increase in oil production, set to take effect from November. The coalition, comprising the Organization of the Petroleum Exporting Countries (OPEC) and Russia, along with some smaller producers, will raise its output by 137,000 barrels per day (bpd) .

This decision comes amid concerns over a potential supply glut and follows a year of significant production increases. OPEC+ has increased its oil output targets by more than 2.7 million bpd this year, equating to about 2.5% of global demand. The group aims to regain market share from rivals such as U.S. shale producers .

The move is part of a broader shift in policy after years of cuts. OPEC+ output cuts peaked in March, amounting to 5.85 million bpd. However, the group is now unwinding these cuts in a phased manner. The eight producers plan to fully unwind one element of those cuts - 2.2 million bpd - by the end of September .

The decision to raise production by 137,000 bpd reflects differing views within the group. Russia, which has been advocating for a modest increase, may struggle to raise output due to sanctions over its war in Ukraine. In contrast, Saudi Arabia has been pushing for a more significant increase to regain market share more quickly .

The move comes as global oil prices have fallen below $65 per barrel, with analysts predicting a supply glut in the fourth quarter and in 2026 due to slower demand and rising U.S. supply. Brent prices are currently trading below this year's peaks of $82 per barrel but above $60 per barrel seen in May .

The increase in production is likely to impact oil stocks, particularly those with significant exposure to upstream operations. Occidental Petroleum (OXY), ConocoPhillips (COP), and Devon Energy (DVN) are among the companies most at risk. These companies are heavily reliant on oil production and may face significant financial pressure if prices continue to fall .