OPEC+ Agrees to 188k Bpd Oil Output Hike, Completes Voluntary Cut Rollback

OPEC+ has agreed to increase oil output by around 188,000 barrels per day (bpd) from September. This move completes the unwinding of a layer of voluntary output cuts that were originally implemented in 2023.

The hike is expected to have little impact on the market due to ongoing export disruptions caused by wars in Iran and Ukraine. Core OPEC+ members, including Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman, will see their production quotas increase as a result of this decision.

Jorge Leon, an analyst at Rystad, believes that OPEC+ has finished unwinding its voluntary cuts and now faces the challenge of managing any surplus that may emerge as export flows normalize. He predicts that the group may pause output increases for the fourth quarter to prepare for 2027 quota negotiations.