OPEC+ to raise output from October: 10 things to know

To regain its dominance in the international oil market, top oil producers' grouping OPEC+ decided on Sunday to increase its production by 1,37,000 barrels per day (bpd) beginning October, according to foreign media. Reports also claimed the decision was taken in the face of concerns regarding weakening demand.

Here are 10 things to know about this development: 

• The increase is said to be modest compared to increases of the last few months, mainly 555,000 bpd monthly increases in August-September and 4,11,000 bpd in June-July.
• Though slow, the production rise could be seen as the strategic move to convey the seriousness of OPEC+ about regaining market share. At a price level of around $65 per barrel, the decision of OPEC+ could mark a major point in the global energy market.
• Over the past few years, the OPEC+ -- which is said to include offshore giants such as Saudi Arabia and the UAE -- has tried balancing oil price with market share from non-OPEC producers.
• OPEC+ is increasing its oil production by reversing previous cuts, with a second phase of unwinding, totaling approximately 1.6 million bpd, starting earlier than planned, following the complete reversal of an initial 2.5 million cut.
• The move is regarded as an indication of the confidence of OPEC+ in its ability to adapt to changing market conditions.
• Although demand is forecasted to weaken, the grouping seemingly remains intent on reclaiming lost market share.
• Saudi Arabia -- the largest producer that is part of the group -- is targeted to uphold a leading role in implementing the enhanced production. 
• OPEC+ has reserved options to accelerate, pause or reverse hikes at future meetings, the latest being scheduled on October 5, where it will examine the impacts of its decisions on the global oil market.
• OPEC+ producers rank among the most prominent producers in the world and will hold the critical stake in charting the future of the energy market.
• This move is expected to have great consequences on the energy market throughout the world which will be vigilantly examined in the coming months.