OPEC+ Completes Oil Production Cut Rollback with September Hike

OPEC+ has completed its rollback of oil production cuts by raising quotas for the sixth consecutive month, adding 188,000 barrels per day (bpd) in September. This move restores the original production levels before additional voluntary cuts were introduced in April 2023.

The seven producers - Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman - agreed to the adjustment via a virtual meeting on Sunday. The raised quotas will provide an opportunity for participating countries to accelerate their compensation, according to OPEC+.

However, around 2 million bpd of separate OPEC+ production cuts dating back to 2022 remain in place and are currently scheduled to run until the end of 2026. Export disruptions affecting Gulf producers, Russia, and Kazakhstan amid regional conflicts have limited oil supplies, despite the group steadily raising its official production targets.

Rystad Energy's Head of Geopolitical Analysis, Jorge Leon, believes that OPEC+ has finished unwinding its voluntary cuts, increasing the likelihood of a pause later this year. The organisation's Joint Ministerial Monitoring Committee (JMMC) expressed concerns regarding attacks on energy infrastructure and their impact on supply availability.