OPEC+ group agrees to further increase oil production

The OPEC+ group agreed at its meeting today to increase oil production by a further 137.000 barrels per day in October. The announcement was made by the Organization of the Petroleum Exporting Countries (OPEC). The OPEC+ group comprises OPEC member countries and their allies, led by Russia.

Eight members of the group agreed to the production increase: Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman. These countries had previously made voluntary production cuts, but have been gradually increasing output since April.

According to OPEC, today's decision takes into account the stable outlook for the global economy and current favorable conditions on the oil market. However, the OPEC+ group has slowed the pace of production increases compared with the previous month, when the agreed output increase was 547.000 barrels per day.

The next meeting of OPEC+ member countries to discuss production policy will take place on 5 October. The group accounts for roughly half of global oil production.

Oil prices fell this week. In addition to speculation about a further increase in production by the OPEC+ group, they were also weighed down by weak data on the US economy and a report of a surprise rise in crude inventories in the United States. The price of North Sea Brent crude fell by almost three percent over the week, closing Friday's trading at 65.5 dollars per barrel.

"We believe that if the eight OPEC+ member countries agree to a further increase in output, it will create significant downward pressure on prices," Commerzbank analysts said on Friday.

"After all, there is already a substantial risk of a supply surplus," they added.