OPEC+ Completes Rollback of Voluntary Cuts, Announces September Oil Hike

OPEC+, a group of oil-producing countries led by Saudi Arabia and Russia, has agreed to increase its oil production quota from September. This decision completes the rollback of voluntary cuts implemented in 2023, which were originally aimed at reducing supply by 1.65 million barrels per day.

The increase of around 188,000 barrels per day was approved on Sunday, but it remains to be seen whether this will have a significant impact on the market. Export disruptions from the Gulf, Russia, and Kazakhstan caused by conflicts in Iran and Ukraine have limited the effect of previous production hikes.

Jorge Leon, an analyst at Rystad, noted that OPEC+ has little incentive to rush into further supply changes after completing the restoration campaign. He predicts a fourth-quarter pause in output increases while the group prepares for 2027 quota negotiations.