OPEC+, agrees to increase production for 5 consecutive months... Concerns over supply glut next year

Major oilproducing countries belonging to OPEC+ have agreed to increase oil production for the fifth consecutive month. According to Reuters, they held a video conference on the 5th and decided to raise August output by 188,000 barrels per day from July. This measure is an extension of the process of reversing the additional voluntary production cuts announced in 2023. OPEC+ has been gradually increasing production since last year, and after pausing the output boost in the first quarter of this year, it resumed the expansion from April. However, the actual increase in production was more limited than planned. Due to disruptions in traffic through the Strait of Hormuz and the fallout from regional conflicts, production at some oilproducing countries did not rise as much as expected. In the market, there are also views that if this trend continues, global oil supply could outpace demand next year.