Opec+ Completes Unwinding of Voluntary Oil Output Cuts

Opec+ has completed its rollback of voluntary oil output cuts, approving an increase in production quotas by around 188,000 barrels per day from September. This move marks the end of a phased unwinding of a 1.65-million bpd supply cut agreed upon in 2023, when the UAE was still part of the group.

The increase is largely symbolic, as successive monthly Opec+ hikes over most of this year have had little impact on the market due to export disruptions from the Gulf, Russia, and Kazakhstan caused by the Iran and Ukraine wars. The move completes the rollback, but core members will meet again on September 6 to discuss any future changes.

Analyst Jorge Leon notes that Opec+ has finished unwinding its voluntary cuts, leaving it with little incentive to rush into further supply changes. He predicts a pause in output increases for the fourth quarter while the group prepares for the 2027 quota negotiations.