OPEC+ Approves September Oil Hike, Then Pauses Further Increases

OPEC+, the alliance of oil-producing countries led by Saudi Arabia and Russia, is set to approve an increase in production for September. The expected hike of around 188,000 barrels per day (bpd) comes after a series of voluntary reductions that have been largely theoretical due to logistical challenges.

The September increase will bring the total output rise for this year up to 1.65 million bpd, marking the end of the initial cut established in 2023. Following this, OPEC+ is expected to pause further production hikes until next year, as negotiations over quota allocations are expected to be tough.

Certain member countries, such as Iraq, are pushing for larger individual quotas to reflect their enhanced output capabilities. The post-September hiatus will maintain about 2 million bpd of OPEC+ reductions from 2022 in effect until a new agreement is reached.