ASIATODAY.ID, VIENNA — OPEC+ has agreed to increase crude oil production in August while reaffirming its commitment to preserving global market stability, signaling confidence in the long-term outlook for oil demand despite persistent economic uncertainty and the accelerating global energy transition.
During a virtual meeting on 5 July 2026, seven members of the alliance—Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman—approved a collective production increase of 188,000 barrels per day (bpd) for August 2026. The adjustment forms part of the gradual unwinding of the additional voluntary production cuts first introduced in April 2023.
The producers emphasized that the restoration of supply will remain gradual, cautious, and fully responsive to market conditions. They reiterated that OPEC+ retains the flexibility to accelerate, pause, or reverse the production increases whenever necessary to safeguard market balance.
The seven countries also reaffirmed their full commitment to the Declaration of Cooperation (DoC), including compliance with agreed production targets and compensation for any excess output recorded since January 2024. Compliance will continue to be monitored by the Joint Ministerial Monitoring Committee (JMMC) through monthly reviews of production levels, market conditions, and compensation plans. The next meeting is scheduled for 2 August 2026.
OPEC Projects Robust Long-Term Oil Demand
Alongside the production decision, OPEC unveiled the World Oil Outlook (WOO) 2026, its flagship annual report on medium- and long-term trends in global energy markets.
The report projects that global energy demand will rise by 23% by 2050, driven by population growth, urbanization, industrial expansion, and improving living standards, particularly across emerging and developing economies.
Despite the rapid expansion of renewable energy and low-carbon technologies, OPEC forecasts that global oil demand will continue to grow steadily, reaching 124 million barrels per day (mb/d) by 2050. The organization argues that oil will remain a cornerstone of the global energy mix, supporting transportation, petrochemicals, aviation, shipping, and industrial development.
The report advocates a balanced and realistic energy transition, emphasizing that energy security, affordability, and emissions reduction must advance together. It also highlights the need to expand access to modern energy services for billions of people while encouraging investment across all energy sources and technologies.
US$17.7 Trillion Investment Needed
OPEC Secretary General Haitham Al Ghais said meeting future energy demand will require sustained investment throughout the energy sector, particularly in upstream oil production.
According to the report, the global oil industry will require approximately US$17.7 trillion in cumulative investment between 2026 and 2050—equivalent to more than US$700 billion annually—to ensure adequate supply and prevent future market imbalances.
The latest production decision and the release of the World Oil Outlook 2026 reinforce OPEC’s message that, while the global energy transition is accelerating, oil is expected to remain an indispensable component of the world’s energy system for decades.
For energy markets and investors alike, the organization’s latest outlook underscores that maintaining long-term energy security will depend not only on expanding clean energy, but also on continued investment in conventional oil production to meet rising global demand. (AT Network)
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