OPEC+ Considers Further Oil Production Hikes Amid Global Pressures

OPEC+ is contemplating another increase in oil production as the group aims to reclaim its market share. This comes after raising quotas by approximately 2.5 million barrels per day, which constitutes about 2.4% of global demand, following a shift from previous output cuts made since April.

Despite efforts to lower prices, oil continues to trade near $70 a barrel, with Western sanctions on countries like Russia and Iran bolstering prices and encouraging production gains from competitors such as the United States. A new output increase could lead to unwinding an additional layer of production cuts by 1.65 million barrels per day, ahead of schedule.

Selected members of OPEC+ are set to meet online this Sunday to decide on October output, amidst speculation of either further production increases or a pause for the month. Notably, OPEC+ represents about half of the world's oil supply. A decision on the matter is pending, with consultations ongoing.