OPEC+ Approves September Oil Output Hike Amid Global Supply Uncertainty

OPEC+, a group of major oil-producing countries, has approved an increase in crude production quotas for September. The decision was made by seven key OPEC+ producers, including Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman.

The quota hike is set at 188,000 barrels per day, which restores the earlier production cuts introduced by the cartel in 2023. However, the move may not immediately impact global oil supplies due to ongoing Middle East tensions and disruptions to exports through the Strait of Hormuz.

Russia's oil industry is facing pressure after repeated Ukrainian drone attacks on energy infrastructure, with its current production at around 9 million barrels per day, below its OPEC+ target of about 9.8 million barrels per day.

The UAE's exit from OPEC+ in May has added uncertainty to the group's decision-making process, raising questions about how long members will remain willing to accept coordinated limits.