Oil Price Drops as OPEC+ Pushes Another Production Boost

Oil prices slipped in early Asian trade after OPEC+ confirmed a significant output hike for September, extending its aggressive push to claw back global market share. 

Brent crude dropped 0.62% to $69.24 per barrel, while West Texas Intermediate declined 0.58% to $66.94. This follows a $2 slide on Friday for both benchmarks, showing that the market is uneasy as fresh supply hits the system.

At a recent meeting, eight OPEC+ members approved a 547,000 bpd production increase for September, continuing a string of monthly jumps that began in April. These incremental hikes, ranging from 138,000 to 548,000 bpd, now total over 2.5 million bpd, accounting for roughly 2.4% of global oil demand. 

OPEC+ justified the decision by pointing to resilient prices near $70 and dwindling global inventories. The group's move reflects a full reversal of its deepest production cuts, signalingconfidence in supply-demand fundamentals despite geopolitical risks. 

What Does This Mean for Me?

OPEC+, which supplies about half of the world’s oil, is scheduled to meet again on September 7. Discussions may include whether to lift an additional 1.65 million bpd of voluntary cuts, which remain in place until 2026. 

The broader OPEC+ framework still holds a 2 million bpd cut set to expire by year-end. As the market adjusts to rising volumes, attention now turns to how the group balances future increases with political friction and internal cohesion.