OPEC+ Considers Pausing Oil Output Growth Amid Logistical Challenges

OPEC+, an alliance of oil-producing countries, may pause its planned crude oil output increases after September. This decision comes as several member countries face ongoing logistical challenges in delivering crude to international markets.

According to reports, OPEC+ plans to halt its phased output growth following September's scheduled increase of 188,000 barrels per day (BPD). This move marks the end of a phased rollback covering a 1.65 million BPD supply cut initiated in 2023 to support market prices.

The coalition has raised allotments this year to offset ongoing supply constraints caused by the conflict with Iran. However, several member countries are struggling to meet their production targets due to logistical challenges.

Geopolitical tensions and supply disruptions have strained OPEC+ membership dynamics. The UAE recently exited the group in May, and Iraq has warned it may leave if its production quotas are not raised.