OPEC+ has added 2.5 million barrels per day to global supply without sparking price volatility, but Asia’s oil consumption—especially in China—slid to its lowest 12‑month level in July amid weak industrial demand.
1. Production Expansion Details
OPEC+ reversed prior voluntary cuts totaling 2.2 million bpd, targeting a 547,000 bpd increment for September. Prices held steady near $70/bbl thanks to geopolitical risk support.
2. Slumping Asian Demand
Despite supply loosening, demand in Asia—particularly China—has decreased. July imports fell to year-low levels, reflecting slower factory activity and energy-intensive industrial output.
3. Strategic Implications
OPEC+ appears balancing production increases with global uncertainty. Sustained demand weakness in Asia could pressure prices later in 2025 if growth fails to rebound.
Editor’s Note
OPEC+ regained discipline without disrupting oil markets—but Asia remains the variable. Weakest demand signals caution for energy-linked capital allocators.
Tags: opec‑supply‑increase, asia‑oil‑demand, energy‑markets, crude‑price‑stability