OPEC+ Members Agree to 188k bpd Oil Production Boost

Oil production is set to increase by 188,000 barrels per day in September as Saudi Arabia, Kuwait, Oman, and four other key members of OPEC+ agreed to a production adjustment. This decision was made during an online meeting on Sunday, despite ongoing disruptions caused by the regional conflict.

The seven participating countries, including Saudi Arabia, Russia, Iraq, Kazakhstan, Algeria, and the UAE (until its exit in May), decided to implement a production increase of 188 thousand barrels per day. Analysts had widely expected this decision, given the current market conditions.

Jorge Leon from Rystad Energy noted that OPEC+ has finished unwinding its voluntary cuts, but cautioned that 'today's decision changes little in the near term because (the Strait of) Hormuz remains constrained.' He warned that the real market impact will come when normal export flows resume.