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A group of eight oil-producing countries within the Opec+ alliance have agreed to increase their collective crude production for September by 547,000 barrels a day (b/d). It is the latest in a series of accelerated output hikes to regain market share, as concerns mount over potential supply disruptions linked to Russia.

The move marks a full and early reversal of the largest tranche of Opec+ output cuts, plus a separate increase in output for the UAE, amounting to about 2.5 million b/d, or about 2.4% of world crude demand.

Oil ministers from the group of eight, which consists of Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman, held a virtual meeting on 3 August, amid increasing US pressure on India to halt Russian oil purchases – part of efforts by the administration of President Donald Trump to bring Moscow to the negotiating table for a peace deal with Ukraine.

In a statement following the meeting, Opec+ cited a healthy economy and low stocks as reasons behind its decision. It, however, added that "the phase-out of the additional voluntary production adjustments may be paused or reversed subject to evolving market conditions".

Oil prices have remained elevated even as Opec+ has raised output, with global benchmark Brent crude trading around the $70-a-barrel mark in recent weeks, supported in part by rising seasonal demand in summer.

Producers from the group have been implementing two sets of voluntary production cuts outside of the broader Opec+ coalition’s formal policy.

For the first strategy, output cuts totalling 1.66 million b/d stay in effect until the end of 2026. Under the second strategy, the countries reduced their production by an additional 2.2 million b/d until the end of the first quarter of 2025.

The eight nations initially set out to boost their production by 137,000 b/d every month until September 2026, but only sustained that pace in April. The group then tripled the hike to 411,000 b/d in each of May, June and July, further accelerating the pace of their increases in August by 548,000 b/d, and now 547,000 b/d for September.

The acceleration in the oil production hike for August came after some Opec+ members such as Kazakhstan and Iraq produced above their targets, angering other members that were adhering to their production quota commitments.

The eight countries are scheduled to meet again on 7 September, when they may consider reinstating another layer of output cuts totalling around 1.65 million b/d. Those cuts are currently in place until the end of next year.