OPEC+ Set to Boost Oil Production Amid Ongoing Supply Disruptions

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, OPEC+, are set to raise their oil production quotas for September amid ongoing supply disruptions. The decision comes as the conflict in the Middle East continues to impact global energy supplies.

Major players like Saudi Arabia and Russia are expected to be at the forefront of this increase when they meet online today. According to Jorge Leon, an analyst at Rystad Energy, OPEC+ is likely to raise production by 188,000 barrels per day (bpd), which would be in line with a trend of similar increases over the past few months.

However, Leon cautions that this September increase could be the last in this series of production adjustments. Since late 2022 to 2023, OPEC+ was worried about falling oil prices and agreed to cut production in three rounds, reducing total output by nearly six million bpd. However, they have since changed their strategy to gradually increase production starting in 2025.

Despite the planned increase in targets, many OPEC+ members are facing capacity constraints and struggling with exports due to Iran's near-paralysis of the Strait of Hormuz amid the Middle East war.