OPEC+ Cartel Agrees to Hike Oil Production by 188,000 Barrels per Day

The OPEC+ cartel has agreed to increase oil production by 188,000 barrels per day from September, reversing earlier cuts implemented in 2023. The decision was made by seven key producers, including Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman.

However, the impact of this increase may be limited due to ongoing disruptions in oil exports caused by the Middle East conflict. The Strait of Hormuz, through which 20% of global oil and gas exports transit, remains congested.

Russia's ability to meet its OPEC+ production target is also uncertain, as it faces pressure on its oil industry following repeated Ukrainian drone attacks. Russia's current production stands at around 9 million barrels per day, below its target of about 9.8 million barrels per day.

Analysts expect the group to take a cautious approach after this increase, with Rystad Energy predicting that OPEC+ will hold production levels steady in the fourth quarter before discussing new quotas for 2027.