OPEC+ Completes Rollback of Voluntary Oil Output Cuts with September Increase
OPEC+ has approved an oil production quota increase of around 188,000 barrels per day from September, completing the unwinding of a layer of voluntary output cuts. This move comes after successive monthly OPEC+ hikes over most of this year remained largely on paper due to export disruptions caused by the Iran and Ukraine wars.
The September increase agreed upon by core OPEC+ members - Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman - finishes the phased rollback of a 1.65-million bpd supply cut originally agreed upon in 2023. This layer of cuts was due to expire at the end of this year.
Despite OPEC+ sources suggesting that the group might pause output increases for the fourth quarter, its statement made no reference to what might be agreed upon for the last three months of 2026. Analyst Jorge Leon from Rystad noted, 'OPEC+ has finished unwinding its voluntary cuts. The next challenge is managing the surplus that could emerge as export flows normalize.'