OPEC+ has approved a significant increase in oil production by 547,000 barrels per day starting in September, raising concerns about potential oversupply in the market. This decision comes as oil prices have recently declined, with Brent crude nearing $69 per barrel and West Texas Intermediate around $67. The increase in production is seen as a strategy to regain market share, particularly in light of ongoing geopolitical tensions and economic pressures affecting global demand.

The announcement of the production hike has led to immediate reactions in the oil market, with prices dropping as traders express concerns over a potential surplus. Analysts note that the increase follows a period of rising oil prices, which had provided OPEC+ with the confidence to adjust output levels. However, weak economic data from the U.S. has raised fears of slowing growth and consumption, further complicating the outlook for oil prices in the coming months.