Seven major OPEC oil-producing nations reached a surprise agreement today (August 2) to increase crude oil production by 188,000 barrels per day starting in September, moving to stabilize the unstable global oil market.

On this day, seven OPEC member countries, including Saudi Arabia and Russia, held a video conference and made this decision. This is a measure to adjust part of the voluntary production cuts announced in April 2023.

The countries participating in this production increase agreement are Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, totaling seven nations. These major oil-producing countries are key players that exert enormous influence on global crude oil supply.

[Photo=Yonhapnews]

OPEC implemented crude oil production cut measures twice in April and November 2023 to respond to global oil price volatility. However, with this production increase decision, assessments suggest that the policy direction for market stabilization has reached a major turning point.

Through this production increase, OPEC made clear its intention to support supply stabilization in the unstable global crude oil market and mitigate oil price volatility. The next meeting is scheduled for September 6, and OPEC is expected to determine any additional measures through continuous market monitoring.

Attention is focused on how this production increase agreement will impact crude oil market supply stabilization and oil price volatility. All eyes are on what OPEC will decide at its next meeting and whether it will continue to support the goal of market stabilization.