OPEC+ to Raise Oil Output from October Amid Slowing Demand

OPEC+ has announced a further increase in oil production starting October, led by Saudi Arabia’s push to regain market share. However, the planned hike of 137,000 barrels per day is significantly lower than the monthly additions seen in recent months, reflecting concerns over weakening global demand.

The group has already unwound a first tranche of 2.5 million bpd cuts since April and is now beginning to ease the second tranche of 1.65 million bpd well ahead of schedule. Analysts note the move is less about volumes and more about signaling OPEC+’s focus on market share, even if it risks softer oil prices.

Oil prices have dropped nearly 15% this year, hurting energy companies’ profits, though they remain supported at around $65 per barrel by Western sanctions on Russia and Iran. Only Saudi Arabia and the UAE have spare capacity to increase output, while most members are pumping near their limits.

The next OPEC+ meeting is scheduled for October 5, with the option to accelerate, pause, or reverse hikes depending on market conditions.