OPEC+ Set for Final Oil Production Hike Amid Global Disruptions
OPEC+, an enlarged organization of oil-producing countries, is set to raise its oil production quotas for September after meeting online on Sunday. According to analyst Jorge Leon from Rystad Energy, OPEC+ will likely increase production by 188,000 barrels per day.
This move marks the last in a series of production adjustments, with some members unable to produce as much oil as their official targets allow due to declining production capacity. Analyst Giovanni Staunovo from UBS notes that increasing targets has become less meaningful for many OPEC+ members.
The Strait of Hormuz, a critical shipping route, has been disrupted by Iran's actions during the Middle East war, making it difficult for Gulf countries to increase exports. Russia's oil production is also struggling due to Ukrainian drone attacks on its infrastructure.
OPEC+ faces potentially difficult talks over new production quotas starting next year, with some member countries like Iraq expressing a desire to significantly boost production.