Opec+ Set for Final Production Increase as Quota Hikes Continue

Opec+, an enlarged Organisation of the Petroleum Exporting Countries, is set to increase oil production quotas for September. This move would complete the unwinding of the second of three production-cut packages introduced by Opec+.

The group's members, including Saudi Arabia, Russia, and five other countries, are expected to raise their production quotas by 188,000 barrels per day. This increase is in line with several months of similar hikes, according to Jorge Leon, an analyst at Rystad Energy.

However, the September increase may be the last in the current series of production adjustments. Opec+ had introduced three separate rounds of production cuts between late 2022 and 2023, reducing total output by nearly six million barrels per day.

Giovanni Staunovo, an analyst at UBS, notes that many Opec+ members are struggling to produce as much oil as their official targets allow due to a decline in production capacity. The Gulf countries have faced difficulties increasing exports due to the ongoing war in the Middle East and targeted attacks on Russian oil infrastructure.