Opec+ Set for Last Oil Production Hike Amid Global Supply Disruptions

The Organization of the Petroleum Exporting Countries (Opec+) is expected to raise its oil production quotas for September, but analysts warn that this increase will likely be the last in a series of hikes.

Jorge Leon, an analyst at Rystad Energy, predicts that Opec+ members including Saudi Arabia, Russia, and six other countries will boost production by 188,000 barrels per day in September. This would complete the unwinding of the second of three production-cut packages introduced by Opec+.

However, many Opec+ members face challenges in producing oil at their official target levels due to a 'decline in production capacity', said Giovanni Staunovo, an analyst at UBS. The Gulf countries have struggled to increase exports due to the near-paralysis of the Strait of Hormuz during the Iran war.

Some member countries, such as Iraq, have expressed a desire to significantly boost production. Opec+ is currently setting maximum sustainable capacity levels for all member states, but analysts warn that 'difficult talks' over new production quotas are looming next year.