OPEC+ announces major July output hike as oil prices fall to four-year low

Saudi Arabia, Russia, and six other major OPEC+ members announced on Saturday a significant boost in crude oil production for July.

The group will add 411,000 barrels per day — the same target previously set for May and June according to a statement. This figure is more than triple the increase the alliance had initially planned.

In recent years, the so-called "Voluntary Eight," or V8, within OPEC+ had agreed to daily production cuts totaling 2.2 million barrels in an effort to support oil prices.

However, in early 2025, OPEC+ members shifted course, opting for a gradual increase in output and have since accelerated the pace.

These actions have driven oil prices down to approximately $60 per barrel — the lowest level seen in four years.

OPEC+ "struck three times: (the output target for) May was a warning, June a confirmation and July a warning shot," Rystad Energy analyst Jorge Leon told AFP.

"The scale of the production increase reflects more than just internal supply dynamics," he added. "This is a strategic adjustment with geopolitical aims: Saudi Arabia seems to be bowing to Donald Trump's requests."

Soon after assuming office, the US President called on Riyadh to raise oil production in a bid to lower prices and, in turn, reduce costs for American drivers at the pump.