OPEC+ Approves Fourth Consecutive Monthly Oil Production Hike

The Organization of the Petroleum Exporting Countries and its allies (OPEC+) has approved another increase in oil production quotas for September, marking the fourth consecutive monthly output hike.

The decision was made during a virtual meeting involving seven key members led by Saudi Arabia and Russia, which resulted in a 188,000 barrels per day (bpd) increase in production quotas. This move is part of OPEC+'s gradual strategy to restore crude supplies to the global market, despite ongoing tensions involving Iran that have disrupted oil production and exports across parts of the Middle East.

The September increase mirrors the increases previously approved for June, July, and August, making it the fourth consecutive monthly production increase of the same volume. It also completes, at least on paper, the reversal of two layers of production cuts introduced in 2023, which amounted to about 3.5 million barrels per day excluding the United Arab Emirates' share.

Nigeria's consistent exceeding of its assigned crude oil production quota is a significant factor in OPEC+'s decision. The country has been producing an average of 1.56 million bpd of crude oil since June, with July and August also seeing surpasses of its OPEC production quota. This improvement in output is expected to help Nigeria meet its target of raising output toward the 1.84 million bpd benchmark contained in the 2026 federal budget.