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OPEC+ to Boost Oil Output in September: Oil ETFs Under Pressure
ZACKSยท 2025-08-06 11:31
Core Viewpoint - OPEC+ announced an increase in oil production by 547,000 barrels per day (bpd) in September 2025, reversing previous production cuts to regain market share amid concerns over supply disruptions related to Russia [1][3]. Production Increase Details - The increase of 547,000 bpd is part of a broader strategy to reverse major output cuts, amounting to approximately 2.5 million bpd, which represents about 2.4% of global oil demand [3]. - The decision to boost output was influenced by the resilience of the global economy and relatively low oil inventories [2]. OPEC+ Meeting and U.S. Influence - Only eight OPEC+ countries participated in the virtual meeting that decided on the production increase, amid growing U.S. pressure on India to halt Russian oil purchases [4]. - The broader OPEC+ alliance, which includes 10 non-OPEC producers, controls about half of the world's oil supply and is shifting strategy to recapture market share after years of production cuts [5]. Remaining Cuts and Future Challenges - A voluntary cut of 1.65 million bpd by eight members remains in effect, alongside a broader 2-million-bpd cut scheduled to expire at the end of 2026 [6]. - The next phase of determining the future of the remaining 1.66 million bpd in cuts may present challenges [6].