OPEC+ eight to cut oil production adjustments in August

The eight OPEC+ countries that previously announced additional voluntary oil output cuts held a virtual meeting on July 5 to assess current market conditions and future prospects.

The group consisting of Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, announced it will implement a production adjustment of 548,000 barrels per day in August 2025, compared to the required output level for July, Caliber.Az reports via the group's statement. 

The deciison was made due to a steady global economic outlook and solid market fundamentals, including low oil inventories.  This move is part of a previously agreed plan to gradually phase out the 2.2 million barrels per day in voluntary cuts that began on April 1, 2025, following a decision made on December 5, 2024.

The adjustment corresponds to four monthly increments as outlined earlier by the alliance. However, the group emphasised that these increases could be paused or reversed depending on market dynamics, maintaining flexibility to support global oil market stability.

The participating nations also reaffirmed their commitment to accelerating compensation for past overproduction. They pledged to fully offset any excess volumes produced since January 2024 and underscored their continued adherence to the Declaration of Cooperation. Oversight of these voluntary adjustments will remain under the purview of the Joint Ministerial Monitoring Committee (JMMC), as agreed during its 53rd meeting on April 3, 2024.

To maintain close monitoring, the eight countries will hold monthly meetings to review market conditions, compliance levels, and compensation progress. Their next meeting is scheduled for August 3, 2025, when they will decide on production levels for September.

By Sabina Mammadli