OPEC+ Approves September Output Hike, Then Pauses Further Increases

OPEC+, a group of oil-producing countries led by Saudi Arabia and Russia, is set to approve an additional 188,000 barrels per day (bpd) increase in September. The decision would complete the return of 1.65 million bpd production cuts agreed upon in 2023.

However, this will be the last monthly output hike for OPEC+ before pausing further increases until January 2027. This pause is due to the group's spare production capacity being reduced by recent events such as Iran's conflict and export disruptions from Russia and Iraq.

The International Energy Agency (IEA) has predicted a large oil surplus if shipments through the Strait of Hormuz fully recover, which may influence OPEC+'s decision on future quotas. The group is reviewing each member's maximum production capacity to set new output targets for 2027.