OPEC+ Agrees to 188k Barrel Oil Production Hike Amid Ongoing Middle East Tensions

The OPEC+ cartel has agreed to increase oil production by 188,000 barrels per day from September, restoring earlier production cuts made in 2023. The decision was made by seven key OPEC+ producers, including Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman.

The increased production quota may not have an immediate impact on global oil supplies due to the ongoing Middle East conflict, which has disrupted oil and gas exports through the Strait of Hormuz. The UAE's exit from OPEC+ in May has added uncertainty to the group's future.

Rystad Energy expects OPEC+ to hold production levels steady during the fourth quarter before discussing quotas for 2027. This cautious approach may allow producers time to assess the impact of restored exports, global demand, and oil prices on their decisions.