OPEC+ Poised to Hike Oil Output Targets Amid Iran War Disruptions

OPEC+ members are likely to increase their oil output targets by 188,000 barrels per day in September, according to three sources. This would be the same as previous hikes in June, July, and August. The group's meeting on August 2 comes amid concerns over Gulf exports after the collapse of a preliminary U.S.-Iran peace agreement.

Oil prices have risen to $100 a barrel due to renewed threats to oil tankers and disruptions to exports from the Red Sea. OPEC+ output is currently far below quotas, with 36.28 million bpd pumped in June, down from almost 43 million bpd in February before the Iran war began.

The seven core OPEC+ members, including Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman, are boosting output as part of a phased rollback of a 1.65 million bpd supply cut agreed in 2023.