OPEC+ to boost oil output by 188,000 bpd from September, pauses further increases

OPEC+ nations plan to boost oil production quotas by about 188,000 barrels per day from September, according to Reuters. However, Saudi Arabia, Russia, and other key members will halt further increases until the year's end. This decision comes as actual production growth has fallen short of approved quotas, largely due to export disruptions stemming from conflicts in Ukraine and the Middle East. These conflicts have impacted supplies from the Persian Gulf, Russia, and Kazakhstan.

The pause in further production hikes is linked to upcoming negotiations for new baseline production levels, which will determine quotas from 2027. This planned increase marks the final phase of a voluntary production cut of 1.65 million barrels per day agreed upon in 2023. Even after this adjustment, restrictions totaling approximately 2 million barrels per day, in place since 2022, will remain.

Some member countries, including Iraq, are advocating for higher individual quotas, citing their own expanding production capacities. The group of seven OPEC+ countries coordinates oil production volumes independently after the United Arab Emirates exited the organization.