Saudis Lift Oil Output Above Quota in Rare OPEC+ Breach

[BumRushDaShow]

Source: Bloomberg

July 11, 2025 at 4:00 AM EDT
Updated on July 11, 2025 at 4:55 AM EDT


Saudi Arabia raised crude output far above its OPEC+ quota last month, joining other producers in a rush to export oil out of the Persian Gulf as Israel went to war with Iran, according to the International Energy Agency.

The kingdom raised crude production by roughly 700,000 barrels a day to 9.8 million barrels a day, with about 70% of the additional supply exported, the IEA said in its monthly report. It was a rare breach of agreed OPEC+ limits by Riyadh, which has repeatedly scolded other members for over-production.

Iraq, Kuwait and the United Arab Emirates also raised production and exceeded their OPEC quotas, the IEA said. Iran’s production declined by 400,000 barrels a day in June from a seven-year high to 3.08 million barrels a day, though the country’s oil infrastructure was largely unaffected by the hostilities. The flood of extra crude comes as global oil markets head for a substantial surplus.

World oil consumption will grow by just 700,000 barrels a day this year, the slowest pace in 16 years excluding the 2020 pandemic slump, the agency said in a monthly report on Friday. It’s a modest downgrade from the previous month. Production from outside the OPEC+ cartel will grow twice as fast as global demand, as the US, Guyana, Brazil and Canada continue to boom, according to Paris-based IEA, which advises major economies on energy policy.

Read more: https://www.bloomberg.com/news/articles/2025-07-11/saudis-surged-oil-output-far-above-opec-quota-in-june-iea-says

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The gasoline suppliers aren't budging to lower prices at the pump. The cheapest around me is still running ~$3.19/gal. Haven't seen below $3 since last fall and earlier this year.

[RussBLib]

1. But Trump said the price was under $2/gallon

...oh yeah, he lies about everything.

[speak easy]

2. It's $1.47 !!

Can't believe your lying' eyes.

[angryxyouth]

3. Aren't oil company subsidies great

$3.19 a gallon! That is what 2 liters of bottled water cost.

[Buddyzbuddy]

4. So, is this to help the Felon or to hurt Iran and Russia?

I paid $3.85 in So. Cal. 3 days ago.

[angryxyouth]

8. I was actually thinking the same thing

One other option was to pump and sell as much as they can before demand goes down

[Cheezoholic]

5. There is literally a good old fashioned "Gas War" going on about 35 miles from me. Gas has been between 2.50-2.65

since mid-April at a middle of nowhere interchange while everywhere else its been averaging 3.30-3.70. For whatever reason at a small interchange on an Interstate they suddenly built 6 giant like 20-30 pump "Pilot" style truck and auto fueling stations there over the past year bringing the total to 8 flipping stations. It's 5 miles from where many of my Dr. visits are so I can save upwards of 30-40 bucks on fill up there if I use rewards. I hadn't seen a real "Gas War" since the 80's lol.

[Mawspam2]

7. Do tell. Where is this oasis?

[IbogaProject]

6. Oil demand has peaked

This is a maneuver to grab cash as global oil demand begins to decrease.