OPEC+ Set for Another Output Hike Amid Ongoing Disruptions

OPEC+ members are likely to raise oil output targets for September, despite ongoing disruptions in Iran and the Red Sea. The group's seven core members - Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman - may increase their target by around 188,000 barrels per day (bpd) for September.

This move would be similar to previous hikes in June, July, and August, when the same countries raised their output targets by roughly 188,000 bpd. OPEC+ has been gradually unwinding a 1.65 million bpd supply cut agreed upon in 2023, with the UAE's departure from the group factored into the calculations.

The current increase in production is part of a phased rollback of that earlier agreement. As a result, oil output remains below quotas due to ongoing disruptions in Iran and the Gulf region. OPEC+ members are currently pumping 36.28 million bpd, down from almost 43 million bpd in February before the conflict began.