OPEC+ Seals 188k Oil Quota Hike as Export Disruptions Continue

OPEC+ agreed to increase oil production quotas by around 188,000 barrels per day from September, completing the rollback of voluntary output cuts.

The move comes after successive monthly OPEC+ hikes over most of this year have had little impact on the market due to export disruptions caused by wars in Iran and Ukraine.

Jorge Leon, an analyst at Rystad, said that although a pause in output increases is still a feasible option for the fourth quarter, 'OPEC+ has finished unwinding its voluntary cuts. The next challenge is managing the surplus that could emerge as export flows normalise.'