OPEC+ Puts Brakes on Oil Output Increases

OPEC+ is preparing to approve one more production increase for September, but then put the monthly quota parade on hold through the end of the year.

Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman are expected to raise their combined September target by about 188,000 barrels per day when they meet on August 2, sources told Reuters. This would match the increases announced for June, July, and August and complete the return of a 1.65-million-bpd voluntary cut agreed in 2023, adjusted for the UAE's departure from OPEC in May.

Then OPEC+ appears ready to stop raising targets, leaving current production targets in place from October until new quotas take effect in January 2027. This pause would leave another 2 million bpd of group-wide cuts in place through the end of 2026.