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Saudi Arabia and Russia, two of the largest oil-producing countries in OPEC+, have announced a dramatic increase in oil production starting in July.
This is a dramatic shift from recent output reductions intended to support prices.
According to a statement released on Saturday, May 31, the coalition, known as the “Voluntary Eight” or V8, will increase output by 411,000 barrels per day. This figure matches the production targets already set for May and June and is more than triple the scale of previous monthly increases.
Until recently, the V8 had collectively reduced daily output by 2.2 million barrels, a policy designed to sustain oil prices amid global market fluctuations.
However, a change in strategy was agreed upon at the start of 2025, with members now accelerating production hikes.
This rapid rise in supply has coincided with a significant drop in oil prices, which have plunged to approximately $60 per barrel, the lowest point seen in four years.
Jorge Leon, an analyst at Rystad Energy, told AFP that the July decision marked the third and most forceful signal from the group: “May was a warning, June a confirmation, and July a warning shot.”
Leon suggested the move reflects broader strategic considerations beyond market supply, noting, “This is a calculated geopolitical shift — Saudi Arabia appears to be responding to Donald Trump’s appeals.”
Since returning to office, US President Trump has pushed Riyadh to increase oil output in a bid to lower global prices, which would translate to reduced fuel costs for American motorists ahead of upcoming elections.
