July 06, (THEWILL) — The Organization of the Petroleum Exporting Countries and its allies (OPEC+) has approved a fresh 188,000 barrels per day (bpd) increase in oil production quotas for August, extending its phased supply restoration strategy as Nigeria continues efforts to ramp up crude output to meet its 2026 fiscal targets amid a softer global oil market.
The decision was announced in a communiqué issued on Sunday following a virtual meeting of seven participating OPEC+ member countries—Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman.
The August adjustment mirrors the production increase approved for July, making it the third consecutive monthly increase of 188,000 bpd as the alliance gradually unwinds the additional voluntary production cuts first announced in April 2023.
According to OPEC+, the participating countries agreed to implement “a production adjustment of 188 thousand barrels per day” from August as part of the phased withdrawal of the voluntary cuts introduced to stabilise the global oil market following periods of weak demand and price volatility.
The group said the gradual increase is intended to support market stability while ensuring flexibility to respond to changing global conditions.
“The production adjustments may be returned in part or in full subject to evolving market conditions and in a gradual manner,” it said.
OPEC+ added that member countries would continue to “closely monitor and assess market conditions” while retaining “full flexibility to increase, pause or reverse the phase out of the voluntary production adjustments” whenever market fundamentals require.
The organisation also said the latest production increase would provide participating countries with an opportunity to accelerate compensation for previous overproduction, reaffirming their commitment to fully comply with the Declaration of Cooperation and offset any excess output recorded since January 2024.
To ensure continued market discipline, OPEC+ said the seven participating countries would maintain monthly meetings to review global oil market conditions, production compliance and compensation plans. The next meeting has been scheduled for August 2, 2026.
The latest decision follows similar production increases approved in recent months as the alliance cautiously restores supply to the international market.
In May, OPEC+ approved a 188,000 bpd increase for June while confirming that seven participating countries, led by Saudi Arabia and Russia, would implement the adjustment. The meeting also coincided with the United Arab Emirates’ withdrawal from the producers’ alliance.
Again in June, the group endorsed another 188,000 bpd increase for July despite supply disruptions associated with the United States-Iran conflict and reduced crude exports through the Strait of Hormuz.
For Nigeria, the latest OPEC+ decision comes as the Federal Government intensifies efforts to increase crude oil production to support economic growth, improve foreign exchange earnings and meet ambitious budget assumptions.
Official industry figures show that Nigeria’s combined crude oil and condensate production averaged 1.73 million barrels per day in May, while natural gas production reached 7,774 million standard cubic feet per day.
Although production remained relatively stable, the Nigerian National Petroleum Company Limited (NNPC Ltd.) reported weaker financial performance during the month.
According to the company’s May 2026 Operational and Financial Report, revenue declined from N4.97 trillion in April to N4.335 trillion in May, while profit after tax fell from N481 billion to N462 billion, reflecting the impact of softer crude oil prices and prevailing market conditions.
The Federal Government’s 2026 budget is benchmarked on crude oil production of 1.84 million barrels per day, with an aspirational production target of 2.06 million barrels per day.
The fiscal framework is also anchored on an oil benchmark price of $64.85 per barrel and an exchange rate ranging between N1,400 and N1,512 to the United States dollar.
Market analysts say the sustained increase in OPEC+ output could exert further downward pressure on international crude prices if global demand fails to keep pace with additional supply.
Brent crude traded at about $72 per barrel on Friday, considerably below the recent highs of more than $120 per barrel, as easing geopolitical supply concerns and the recovery of oil exports from the Middle East continued to weigh on prices.
For Nigeria, where crude oil exports remain the backbone of government revenue and foreign exchange earnings, any prolonged decline in international oil prices could undermine fiscal projections despite ongoing efforts to boost production and attract new investment into the upstream petroleum sector.
Felix Ifijeh is a journalist with years of professional reporting experience. Known for his keen news sense, compelling storytelling and commitment to accurate, impactful reporting, he has built a reputation for turning leads into clear, engaging, and well-structured reports that resonate with readers. His work reflects deep newsroom experience and a commitment to accurate, impactful journalism.
