• OPEC+ to increase oil production by 548,000 barrels per day in August.
• This increase is larger than previous monthly targets of 411,000 bpd.
• The decision responds to a steady global economic outlook and low oil inventories.
• Analysts predict further increases as the group aims to regain market share and respond to U.S. pressure.
• Internal tensions exist among OPEC+ members regarding compliance with output quotas.

OPEC+ has officially decided to boost oil production by 548,000 barrels per day (bpd) in August, marking a significant increase over the previously approved rates of 411,000 bpd for the months of May, June, and July, as well as just 138,000 bpd in April. This decision follows a period of curtailment designed to support market conditions over the past few years, with the group now shifting focus to regain lost market share, especially against rising production from non-member countries like the U.S. and to alleviate pressure for lower gasoline prices from global consumers, including the United States, according to Bangkok Post and India Times.

The rise was prompted by a steady global economic outlook and low oil inventories, with experts highlighting that OPEC+ is now embracing a market share strategy. "OPEC+ keeps surprising the market," remarked Jorge Leon from Rystad Energy, indicating that this hike sends a clear message about the group's shift in focus. As geopolitical tensions briefly pushed oil prices above $80 per barrel recently, the dynamics of supply and demand remain critical, especially as the market awaits the absorption of additional supplies, reports India Times and Reuters.

The upcoming production increase will result in a total of around 1.92 million bpd being restored since April, while OPEC+ still has a broader strategy that includes recovering previous cuts of 2.2 million bpd. Despite the announced increases, actual output has lagged behind potential production levels, raising questions about whether OPEC+ can meet demand without triggering further price declines, according to Reuters and Reuters.

With this decision, Saudi Arabia and other key players, including Russia, aim to respond not only to internal pressures within the group regarding quota compliance, especially from countries like Kazakhstan and Iraq that have exceeded their production limits but also to external demands for steadier fuel prices. Market forecasts have projected that additional output raises may occur in September as part of ongoing efforts to fully unwind production cuts, depending on global consumption patterns and price levels in the coming months, reported by Jakarta Post and India Times.