Uche Cecil Izuora
The Organization of Petroleum Exporting Countries and its allies known as (OPEC+ ) has approved a further 188,000-bpd production quota increase for September.
The output increase completes the planned unwinding of the voluntary output cuts introduced in 2023 while leaving room for additional supply once Middle East oil flows normalize.
The increase, agreed by seven producers led by Saudi Arabia and Russia, comes despite continued supply disruptions linked to the conflict involving Iran and shipping constraints in the Persian Gulf and Red Sea.
While largely symbolic for now, the September increase completes the reversal of approximately 3.5 MMbpd of production cuts announced in 2023, although many OPEC+ members remain unable to raise output to their allotted quotas because of technical and operational constraints.
Delegates told Bloomberg last week the group currently expects to hold production quotas steady for the remainder of 2026 following the September increase, though those plans could change depending on market conditions.
OPEC+ also reiterated concerns about attacks on regional energy infrastructure and threats to maritime security, warning they could increase market volatility and undermine efforts to stabilize global oil markets.
An eventual easing of the Middle East conflict could allow Saudi Arabia and other Gulf producers to restore additional production, helping rebuild depleted global crude inventories and potentially shifting the market back toward surplus after months of supply disruptions