Opec+ Quota Hike Completes Unwinding of 2023 Oil Cuts

Opec+ member nations have approved another small increase in their oil production quotas, this time by 188,000 barrels per day. This will complete the unwinding of 2023 oil cuts and give them flexibility to add more barrels once the Middle East war ends.

The group's seven major members, led by Saudi Arabia and Russia, agreed on the quota hike during a video call on Sunday (Aug 2). The increase is part of a series of monthly raises that have taken place even as supply from the region remains constrained due to ongoing conflict. Bloomberg reported that Opec+ plans to hold production levels steady for the rest of 2026 after the September hike.

The boost may give Saudi Arabia leeway to raise production once oil flows from the Persian Gulf return to normal, helping to replenish the world's depleted stockpiles. The supply squeeze triggered by conflict is pushing up fuel costs, stoking fears of another spike in inflation. US President Donald Trump said over the weekend that the US would hold off on new strikes against Iran after the Islamic Republic and other Middle Eastern nations told him they were working towards a deal.