LONDON: The Voluntary Eight (V8) — comprising Saudi Arabia, the UAE, Oman, Kuwait, Iraq, Kazakhstan, Algeria, and Russia — have announced a collective decision to increase oil production by 547,000 barrels per day starting September 2025. The move, agreed upon during a recent meeting, is part of a broader strategy to regain market share amid steady demand and resilient crude prices.
Currently producing around 41–42 million barrels daily, the group’s planned increase represents a 1.5% uptick. However, analysts suggest the modest rise is unlikely to significantly affect global oil prices, with Brent crude trading at approximately \$70 per barrel.
According to OPEC, the adjustment comes in response to a “steady global economic outlook and healthy market fundamentals,” including persistently low oil inventories. The V8 has been gradually unwinding the 2.2 million barrels per day of production cuts initiated last year, and this latest increase completes that phase a year ahead of schedule. Notably, the UAE has been allocated an additional tranche of 300,000 barrels per day.
Analysts, including Jorge Leon of Rystad Energy, noted that OPEC+ has so far managed to restore output without destabilizing prices or internal cohesion. However, he cautioned that further increases could prove more challenging amid geopolitical tensions, especially those involving Iran and Israel, and global uncertainty linked to U.S. trade policies under President Donald Trump.
The V8 group affirmed that the phase-out of voluntary cuts may be paused or reversed depending on market dynamics. Monthly reviews will be conducted, with the next meeting scheduled for September 7, while the broader 22-member OPEC+ alliance will reconvene in late November to consider further adjustments.
By AFP
