OPEC+ Set to Raise Oil Production Amid Global Disruptions

Oil production by OPEC+ members is expected to rise for September, but this may be the last increase in the current series of adjustments. According to Jorge Leon, an analyst at Rystad Energy, the group will likely raise production by 188,000 barrels per day. This follows several months of similar hikes and completes the unwinding of the second of three production-cut packages introduced by OPEC+.

However, some analysts warn that increasing production targets has become less meaningful due to a 'decline in production capacity' among many member countries. The Gulf states have struggled to increase exports due to disruptions at the Strait of Hormuz, and Russia's oil infrastructure has been targeted by Ukrainian drone attacks.

The group is currently setting maximum sustainable capacity levels for all member states, but this process may be complicated by 'difficult talks' over new production quotas next year. The UAE's withdrawal from OPEC+ in May highlighted a weakness in the group's cohesion, with analysts warning that cohesion could be at risk.