The Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Saudi Arabia and Russia—collectively known as OPEC+—have announced a fresh increase in crude oil production for the month of July 2025.
In a statement released on Saturday, the group confirmed it will raise output by 411,000 barrels per day, maintaining the same level of increase introduced in May and June. This move comes as a surprise to market observers, given the group’s earlier cautious stance on output levels.
The decision comes amid recent fluctuations in global oil prices. Last week, crude prices fell due to mounting concerns that a new wave of U.S. tariffs under President Donald Trump could lead to an economic slowdown, thereby reducing oil demand. Shortly after assuming office, President Trump had called on Saudi Arabia to boost production in an effort to reduce fuel costs for American consumers.
Production cuts by OPEC+ were first implemented in 2022 to stabilise global oil prices amid shifting demand patterns. However, the alliance stunned markets earlier this year by ramping up production for May and June, exceeding initial plans of a modest 137,000 barrels per day.
The newly announced July increase marks a continued reversal of earlier policy. While OPEC+ had previously agreed in December to maintain deep collective cuts of nearly 2 million barrels per day until late 2026—along with additional voluntary cuts by some members totaling 1.65 million bpd—the group has opted to gradually loosen the taps.
This latest move is more than triple the production hike initially forecasted and suggests a strategic shift aimed at balancing market pressures, geopolitical demands, and the need for revenue stability among producing nations.
