Your current location is:FTI News > Exchange Dealers
OPEC+ is expected to increase production again in July.
FTI News2025-07-28 06:46:16【Exchange Dealers】7People have watched
IntroductionWhat is the Forex 4xhub platform,Foreign exchange trading app software ranking,At this week's ministerial meeting, OPEC+ countries unanimously agreed to maintain the current
At this week's ministerial meeting,What is the Forex 4xhub platform OPEC+ countries unanimously agreed to maintain the current official production quotas unchanged, while market attention turned to a subgroup composed of eight member countries, including Saudi Arabia and Russia. These countries had previously implemented voluntary additional production cuts and plan to gradually restore some production over the coming months.
According to the meeting announcement, the entire OPEC+ alliance will continue to uphold a formal agreement to maintain a policy of reducing production by about 2 million barrels per day until the end of 2026, supplemented by two informal voluntary reduction mechanisms. Currently, the eight countries—Saudi Arabia, Russia, UAE, Iraq, Algeria, Kazakhstan, Kuwait, and Oman—are voluntarily cutting an additional 1.66 million barrels per day until the end of next year.
Furthermore, this subgroup implemented another plan for a daily reduction of 2.2 million barrels by the end of March but has started to gradually cancel it over the following months. As per the latest arrangements, these countries will collectively restore a capacity of 1 million barrels per day from April to June and will assess over the weekend whether to further increase production in July.
Possible Production Increase in July Exceeding 400,000 Barrels Per Day
According to unnamed OPEC+ representatives, the subgroup might continue to increase production in July, with one representative suggesting it could reach 411,000 barrels per day, equivalent to the increases in May and June. This pace of increase reflects OPEC+'s dynamic strategy to flexibly respond to changes in supply and demand.
OPEC+ energy ministers also called on the OPEC Secretariat during the meeting to evaluate the sustainable capacity of each country, aiming to set more precise baseline production levels for 2027. This figure will directly impact the allocation of quotas in future production cut agreements among member countries.
UAE Energy Minister Mazrouei pointed out, "The group is doing its utmost, but these eight countries alone are not sufficient; we need the collaboration of all members."
Market Reaction: Oil Prices Rise as Demand Outlook Strengthens
On the day the OPEC+ meeting concluded, international oil prices rebounded. The July contract for London Brent crude closed up 81 cents, at $64.90 per barrel, a rise of 1.26%; New York WTI July crude futures closed up 95 cents, at $61.84 per barrel, an increase of 1.56%.
Analysts believe the rebound in oil prices is supported not only by changes on the supply side but also by the approaching peak summer demand season. The start of the travel season and increased demand for air-conditioning electricity in Middle Eastern countries typically lead to a significant increase in oil consumption.
UBS strategist Giovanni Staunovo stated, "In the first quarter, the oil market was actually balanced in terms of supply and demand, contrary to prior forecasts of oversupply. With more data being released, we anticipate further adjustments to forecasts."
He expects that with seasonal demand rising and OPEC+ production increases returning to the market, oil prices may stabilize in the $60 to $70 per barrel range over the coming months.
Risk Warning and DisclaimerThe market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.
Very good!(78898)
Previous: Tickmill Broker Review:Regulated
Related articles
- IBM decided to sell the Weather Company's assets to Francisco Partners.
- AUD's rebound against USD is limited, with focus on RBA minutes and Fed policy.
- Israel and Hezbollah near ceasefire as Trump’s trade reversal sends gold tumbling over 3%.
- Mitsubishi UFJ bullish on AUD: targets 0.7158, likely to break resistance.
- ArkPie fraud exposed
- Dollar decline and lower bond yields boost gold as Middle East tensions increase risk aversion.
- USD strengthens against CAD as markets expect BoC’s dovish stance to boost its rise.
- Risk aversion boosts gold to a new high amid U.S. election disputes and Middle East conflicts.
- Beware of unlicensed entities! UK's FCA blacklists 14 new firms.
- Gold sees biggest weekly drop in five months; market bearish, retail investors bullish.
Popular Articles
Webmaster recommended
Yellow's bankruptcy is just the tip of the iceberg in the U.S. freight decline.
AUD's rebound against USD is limited, with focus on RBA minutes and Fed policy.
USD strengthens against CAD as markets expect BoC’s dovish stance to boost its rise.
The ruble depreciated to 114 amid intensified sanctions and central bank interventions.
CITIC Bank Involved in 56 Violations, Fined Over ¥2.24 Billion
BOJ October minutes show internal split on timing of rate hike amid market volatility concerns.
Offshore yuan hits 4
BOJ October minutes show internal split on timing of rate hike amid market volatility concerns.