NEW YORK — The OPEC+ alliance, comprising several oil-exporting nations, has decided to increase oil production by 547,000 barrels per day starting in September. This decision was made during a virtual meeting held on Sunday. The group cited a stable global economic outlook and low oil inventories as reasons for the increase, which some analysts believe could lead to lower oil and gasoline prices.

The countries involved in this production boost include Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman. These nations had previously been participating in voluntary production cuts that began in November 2023, which were originally set to continue until September 2026. The latest announcement indicates that these cuts will end sooner than planned.

This decision follows a similar move in July, when OPEC+ agreed to raise production by 548,000 barrels per day for August. OPEC has indicated that future production adjustments may be paused or reversed depending on market conditions.

Currently, Brent crude oil, a global benchmark, is trading near $70 per barrel. Factors contributing to this price include potential reductions in Russian oil supply and a significant increase in crude inventories in China, according to research from Clearview Energy Partners. The firm noted, "President Trump has not obviously relented from his threat to sanction Russian energy if the Kremlin does not reach a peace deal with Ukraine as of August 7, potentially via 'secondary tariffs' on buyers."

The eight OPEC+ countries are scheduled to meet again on September 7 to discuss further production strategies. The recent increase in output comes amid ongoing U.S. pressure on nations like India to reduce their purchases of Russian oil, as part of efforts to compel Moscow to end its conflict in Ukraine.

Despite the increase in production, concerns remain about the impact on oil prices. Analysts are watching closely to see how these changes will affect the market and whether they will lead to lower prices at the pump for consumers.