OPEC+ Agrees Small Oil Quota Hike Despite Ongoing Supply Constraints

OPEC+ nations have agreed in principle to increase their oil production quotas for September by a further 188,000 barrels per day. This would be the latest in a series of monthly increases since the Iran war began, despite supply constraints due to the conflict.

The move is seen as symbolic for now but may give Saudi Arabia leeway to raise production once oil flows from the Persian Gulf return to normal and help replenish depleted stockpiles. This could potentially alleviate a supply squeeze triggered by the conflict that has pushed up fuel prices, stoking fears of inflation.

The Organization of the Petroleum Exporting Countries and its partners have been steadily increasing quotas each month even as supply from the region remains constrained by the war. The US has announced it will hold off new strikes against Iran after being told by the Islamic Republic and other Middle Eastern nations that they are working towards a deal.