OPEC+ Boosts Oil Output Amid Ongoing Disruptions

Oil production is set to increase by 188,000 barrels per day (bpd) in September, according to an agreement reached by key members of OPEC+, including Saudi Arabia and Russia. This decision was widely expected by analysts, who see it as a step towards unwinding the voluntary cuts introduced by the organization.

Jorge Leon, an analyst at Rystad Energy, noted that the increase is unlikely to have a significant impact in the near term due to ongoing disruptions caused by the war in the Middle East. He warned that 'the real market impact will come when normal export flows resume.'

Many OPEC+ members are struggling to produce as much oil as their official targets allow, due to declining production capacity. Giovanni Staunovo, an analyst at UBS, said that increasing targets has become less meaningful for these countries.

Rystad Energy's Leon expects a pause in supply changes in the fourth quarter, citing the group's preparations for 2027 quota negotiations as a reason for this decision.