Russia open to August production increase if OPEC+ agrees, following July's 411,000 bpd boost approval.

Russia open to August production increase if OPEC+ agrees, following July's 411,000 bpd boost approval.

Russia has expressed openness to another production increase in August if OPEC+ deems it necessary, according to a source familiar with the nation's position. This comes after the group approved a 411,000 bpd hike for July, the latest in a series of monthly increments aimed at unwinding voluntary production cuts [1].

The OPEC+ alliance, which includes Russia and other key oil-producing nations, has been gradually increasing its output since April. This month, the eight members of the group agreed to a 411,000 bpd increase for July, following similar hikes in May and April [2].

Russia initially opposed a production increase proposed by Saudi Arabia at the June meeting, but ultimately supported the decision. The country's oil industry is ready for another production hike in August if the government approves it, according to another source [1].

The ongoing production hikes are part of OPEC+'s strategy to return barrels to the market and offset the impact of previous cuts. The group's collective output is currently cut by 5.3 million bpd, or about 5% of global demand. However, the unwinding of these cuts is expected to be gradual and controlled to avoid market overstocking [2].

The recent U.S. and Chinese purchases for strategic oil reserves are also expected to help manage any potential global surplus and keep oil prices in check. The U.S. administration has set the task of replenishing strategic oil reserves, while China has announced plans to accelerate the replenishment of its strategic fuel reserves [3].

The next OPEC+ meeting is scheduled for July 6, where the group will discuss the possibility of another production increase for August. Russia's participation in these discussions underscores the importance of the OPEC+ partnership for Moscow and its commitment to finding a solution acceptable to the entire group.

References:
[1] https://www.bloomberg.com/news/articles/2025-06-25/russia-is-open-to-new-output-hike-if-opec-decides-it-s-needed
[2] https://www.hellenicshippingnews.com/how-are-opec-oil-producers-unwinding-their-output-cuts/
[3] https://ca.finance.yahoo.com/news/us-chinese-strategic-buys-may-070545037.html