OPEC+ Poised for Last Oil Output Hike Amid Middle East Disruptions

OPEC+ is set to raise oil production in September as its members push for more supply amid disruptions in global energy markets. The group, which includes Saudi Arabia, Russia, and five other nations, will likely increase output by 188,000 barrels per day, according to Jorge Leon of Rystad Energy.

This would mark the last in a series of production adjustments made by OPEC+, which had previously cut oil production by nearly six million barrels per day between late 2022 and 2023. However, many members are struggling to meet their official targets due to declining production capacity, said Giovanni Staunovo of UBS.

The Strait of Hormuz has been a major bottleneck for Gulf countries, with Iran orchestrating near-paralysis of the waterway during the Middle East war. Despite a brief upswing in shipping traffic after a US-Iran memorandum of understanding was signed in June, exports remain hindered.

Russia's oil infrastructure has also been repeatedly targeted by Ukrainian drone attacks, keeping production at around nine million barrels per day, short of its 9.8 million target.