Opec+ Set for Last Oil Production Hike as Middle East War Continues

Opec+ members are expected to raise their oil production quotas for September as the Middle East war continues to disrupt global energy supplies. Saudi Arabia, Russia, and five other Opec+ members will likely increase production by 188,000 barrels per day when they meet online on Sunday.

This move would complete the unwinding of the second of three production-cut packages introduced by Opec+, said Jorge Leon, an analyst at Rystad Energy. However, 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 near-paralysis of the Strait of Hormuz orchestrated by Iran during the war in the Middle East. Russia's oil infrastructure has also been targeted by Ukrainian drone attacks, with production hovering at around 9 million barrels per day compared to a target of 9.8 million.