OPEC+ Set for Final Hike Before Production Quota Talks

Oil production quotas are expected to rise again for September as OPEC+ meets online on Sunday. Analysts at Rystad Energy predict an increase of 188,000 barrels per day, following several months of similar hikes.

This would be the last in a series of production adjustments, according to Jorge Leon from Rystad Energy. Between late 2022 and 2023, OPEC+ cut oil production by nearly six million barrels per day in three separate rounds to combat falling prices.

However, many members are struggling to produce as much oil as their targets allow due to a decline in production capacity. Analysts at UBS point out that increasing targets has become less meaningful for some countries, such as the Gulf states and Russia, which have been affected by the Middle East war and drone attacks.

Despite this, Iraq is reportedly eager to significantly boost its production, while OPEC+ continues to set new sustainable capacity levels for its member states. Analysts at DNB Carnegie warn that OPEC+ may face 'difficult talks' over new production quotas next year following the September increase.