OPEC+ agrees to significantly increase production.

OPEC+ has agreed to significantly increase oil production in September, a year ahead of schedule to complete the current phase of the supply recovery plan, the organization is taking action to reclaim its share in the global crude oil market. Representatives said that Saudi Arabia and its partners reached an agreement during a video conference to increase production by about 548,000 barrels per day next month. This will completely reverse the 2.2 million barrels per day cut implemented by 8 member countries in 2023, including additional quotas gradually increased by the UAE. A representative stated that another part of the production cut, about 1.66 million barrels per day, will be reassessed by the end of December. The latest production increase marks a significant shift in strategy for the oil-producing countries organization and its partners from defending oil prices to increasing supply. Despite geopolitical tensions and strong seasonal demand, this shift helps suppress oil and gasoline futures prices, bringing some relief to drivers and allowing U.S. President Donald Trump to achieve a victory. Accelerated production increase is also fueling expectations of global oversupply later this year. Sunday's decision confirms a landmark agreement first reported by Bloomberg on Saturday. Meanwhile, President Trump is increasing diplomatic pressure on OPEC+ joint leaders Russia. Trump threatened to impose secondary tariffs on buyers of Russian oil unless the war in Ukraine rapidly ceases. A disruption in Russian oil supply could push up oil prices, contradicting Trump's repeated calls to lower oil prices as he pushes the Federal Reserve to lower interest rates. Russian Deputy Prime Minister Alexander Novak made a rare visit to Riyadh on Thursday to discuss "cooperation between the two countries" with Saudi Energy Minister Prince Abdulaziz bin Salman. These two countries have jointly led OPEC+ for the past decade.