A coalition of major oil-producing nations said Sunday it will slightly scale back its voluntary production cuts starting in October.

A gas flame is seen in the desert at Khurais oil field in Saudi Arabia in June 2008. File Photo by Ali Haider/EPA UPI

Sept. 7 (UPI) -- A coalition of major oil-producing nations said Sunday it will slightly scale back its voluntary production cuts starting in October, adding a small amount of crude back into global markets while keeping most of its reductions in place.

Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman, which have made extra voluntary cuts since 2023, met virtually Sunday to review global market conditions and agreed to reduce those curbs by about 137,000 barrels a day, the Organization of the Petroleum Exporting Countries announced in a news release.

Decisions by OPEC+, which includes nonmember producers like Russia, matter for everyday Americans because the group controls more than 40% of global oil output and helps set the price of crude oil, the main ingredient in gasoline. Even small shifts in production can ripple through global markets, affecting what drivers pay at the pump, the costs of shipping and air travel, and broader inflation that touches everything from groceries to utilities.

If the scale-back of cuts succeeds in balancing supply with demand, oil prices may stabilize or even ease slightly, giving consumers modest relief at the pump and helping to cool inflation pressures. But if markets weaken or inventories climb unexpectedly, OPEC+ could reverse course, pausing or restoring the cuts, which could tighten supply and push prices back up.

The move is a fraction of the 1.65 million barrels per day the group pledged to withhold from the market in April 2023, when concerns about slowing demand and oversupply were pressing prices downward.

In November 2023, the alliance introduced an additional 2.2 million barrels per day in voluntary cuts. The April 2023 cuts were meant to be extended through 2025, and the November 2023 cuts were scheduled to phase out gradually through September 2025, although both could be modified based on market developments.

Officials said the adjustment reflects what they described as a steady global economic outlook and "healthy" market fundamentals, pointing to low oil inventories as evidence that supply and demand remain balanced. They emphasized that the cuts can be restored gradually, in part or in full, if conditions shift.

Analysts cautioned that the actual increase in oil supply may be far smaller than the headline figures suggest. Only Saudi Arabia and possibly the United Arab Emirates have enough spare capacity to raise output significantly, while most other members are already pumping near their limits, according to the Financial Times.

As a result, the real boost to global supply in October could be closer to 60,000 barrels a day, people familiar with the discussions told the newspaper.

The group has already raised output targets by about 2.5 million barrels a day this year as it unwound earlier cuts, the Financial Times reported.

Brent crude, the international benchmark, closed Friday at $65.50 a barrel -- down 2.2% on the day but still up from a low of $58 a barrel in April.

OPEC+ said it will hold monthly meetings to reassess market conditions and review members' conformity. The next session is scheduled for Oct. 5.