OPEC+ Agrees to September Oil Hike, Completing Voluntary Cut Rollback

OPEC+ has agreed to increase oil production by around 188,000 barrels per day (bpd) from September. This move completes the phased rollback of a 1.65 million bpd supply cut originally agreed in 2023.

The increase is seen as completing the unwinding of voluntary output cuts. However, it remains to be seen whether OPEC+ will pause further output increases for the fourth quarter. According to Rystad analyst Jorge Leon, a pause remains a feasible option.

OPEC+'s Joint Ministerial Monitoring Committee also expressed concern about attacks on energy assets during the US-Israeli war on Iran, which it said were expensive and time-consuming to repair and had an impact on supply.