OPEC+ Agrees to September Oil Production Hike

OPEC+, the producer group comprising core members Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman, has agreed to increase oil production quotas by around 188,000 barrels per day from September. This move marks the completion of the phased rollback of a 1.65 million bpd supply cut originally agreed in 2023.

The increase is part of OPEC+'s efforts to unwind a layer of voluntary output cuts. The remaining layer of output cuts, which amounts to roughly 2 million bpd, will remain in place until the end of this year and applies to most of the group's members.

OPEC+ is currently reviewing its members' oil production capacity for the 2027 output baselines from which quotas are set. This review may lead to potentially difficult talks over new production quotas, with some members pushing for higher individual quotas to reflect their increased capacity.