PTI New Delhi

Eight member countries of the Organization of the Petroleum Exporting Countries have decided to implement production hike of 547,000 barrels per day in September. In view of a steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories, the oil cartel has decided to implement the output hike, the cartel said in a release.

Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman had been participating in voluntary production cuts, initially made in November 2023, which were scheduled to be phased out by September 2026. But the voluntary production cuts ended ahead of schedule. 

The eight countries began raising output in April with a hike of 138,000 bpd, followed by larger-than-planned hikes of 411,000 bpd in May, June and July and 548,000 bpd in August. The phase-out of the additional voluntary production adjustments may be paused or reversed, subject to evolving market conditions. This flexibility will allow the group to continue to support oil market stability, it said. 

The eight countries will hold monthly meetings to review market conditions, conformity, and compensation. These eight members of the cartel noted that this measure will provide an opportunity for the participating countries to accelerate their compensation. These countries reiterated their collective commitment to achieve full conformity with the Declaration of Cooperation, including the additional voluntary production adjustments.