OPEC+ Set to Boost Oil Production for Last Time in Current Series

OPEC+ is expected to raise its oil production quotas for September as global energy supplies continue to be disrupted by the Middle East war. Saudi Arabia, Russia, and five other members of the group will likely increase their output by 188,000 barrels per day, following several months of similar hikes.

This would complete the unwinding of the second of three production-cut packages introduced by OPEC+ between late 2022 and 2023. However, the actual impact of this increase may be limited due to a decline in production capacity among some member countries.

Giovanni Staunovo, an analyst at UBS, noted that many OPEC+ members are struggling to produce as much oil as their official targets allow. This is particularly true for Gulf countries, which have been hindered by the near-paralysis of the Strait of Hormuz orchestrated by Iran during the war.