OPEC+ has announced plans to increase oil supply by 188,000 barrels per day in August, as reported by social media account @CHItrader. This marks the fourth consecutive monthly increase, as the organization aims to counteract the voluntary production cuts that were in place from 2023 to 2024. The decision comes ahead of the July 6 ministerial meeting and aligns with efforts to mitigate potential disruptions from geopolitical tensions, particularly involving U.S.-Israel relations with Iran. The increased supply reflects ongoing adjustments to address a projected global oil surplus, which could impact crude oil prices further.
Market participants have adjusted their expectations accordingly, with the likelihood of crude oil reaching a new all-time high by September 30 now priced at 2.5% YES, down from 3% 24 hours ago and 12% a week ago. Similarly, the odds for hitting a new peak by December 31 have decreased to 7.5% YES, reflecting a continued decline in expectations amid the expanded supply. Current Brent crude futures are at $72.12, underlining the downward price pressure in response to the International Energy Agency’s forecast of a surplus in early 2026.
Key Takeaways
OPEC+ appears to be maintaining its strategy of gradually increasing oil supply, consistent with efforts to stabilize prices and address surplus concerns.
