Quick overview

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OPEC+ remained firm on Saturday, increasing its July production by 411,000 barrels daily to regain market share and penalize over-producers.

After years of reducing output, which exceeded 5 million barrels per day (bpd), or 5% of global demand, eight OPEC+ nations slightly boosted output in April before tripling it in May, June, and July.

The decision indicates that market share is a top priority.

OPEC+ justified the July increase  by pointing to a “steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories.”

OPEC+ is responsible for producing half of the world’s crude oil.

All producers feel the impact of the increased supply, but some are more affected than others, including the US, a significant rival group, particularly shale producers.

The OPEC+ eight have now raised or announced a total of 1.37 million barrels per day since April, which is 62 percent of the 2.2 million barrels daily they want to bring back to the market.

According to OPEC+ officials, including Russian Deputy Prime Minister Alexander Novak, higher summer oil demand supports increasing output.