OPEC+ Rolls Back Cuts, Increases September Oil Production

OPEC+ has agreed to increase oil production in September by 188,000 barrels per day, effectively rolling back voluntary cuts made earlier this year. The move is seen as a attempt at self-preservation for the organization, which has been plagued by internal conflicts and external challenges.

The Organization of the Petroleum Exporting Countries (OPEC) and its partners have dominated the oil market for years, but their control has been eroding in recent times. In 2023, they implemented voluntary production cuts to stabilize prices amid volatile demand and rising non-OPEC supply. However, these cuts were only temporary.

Energy analyst David Blackmon says that OPEC+ has lost control over crude oil markets and is barely functioning as an organization itself. He notes that the Strait of Hormuz, a key shipping route, remains a major bottleneck in global oil supplies.