OPEC+ approves 188,000 bpd oil output increase for September

OPEC+ members, including Saudi Arabia and Russia, agree to boost oil production by 188,000 barrels per day from September. Learn how this impacts global su Read More: https://punchng.com/opec-boosts-september-production-by-188000-barrels-per-day/

Seven OPEC+ producers, including Saudi Arabia and Russia, will raise their combined oil output target by 188,000 barrels per day from September.

LONDON, - OPEC+ approved an oil production quota increase on Sunday of around 188,000 barrels per day from September, the producer group said, in ‌a move that ⁠completes the unwinding ⁠of a layer of voluntary output cuts.Due to export disruptions from the Gulf, Russia and Kazakhstan caused by the Iran and Ukraine wars, ​successive monthly OPEC+ hikes over most of this year have remained largely on paper with little impact on the market.The September ​increase agreed by core OPEC+ members - Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman - finishes the phased rollback of a 1.65 million bpd supply cut originally agreed in 2023, when the group still included the United Arab Emirates, which ​left OPEC in May.Although OPEC+ sources said before the meeting the ⁠group would likely ‌pause output increases for the fourth quarter, its statement made no reference to what might ​be agreed for ​the last three months of 2026.A pause was still a feasible option, said Jorge ⁠Leon, an analyst at Rystad."OPEC+ has finished unwinding its voluntary cuts. The next challenge ​is managing the surplus that could emerge as export flows normalise," he said."Having ​completed the restoration campaign, OPEC+ has little incentive to rush into further supply changes. Our base case is a fourth-quarter pause while the group prepares for the 2027 quota negotiations."OPEC REVIEWING CAPACITY BEFORE SETTING 2027 QUOTASA separate OPEC+ meeting of a panel called the Joint Ministerial Monitoring Committee also met, OPEC said on Sunday, and reiterated concern about attacks on energy assets during the U.S.-Israeli war on Iran, saying they were expensive and time-consuming to repair and ‌so have an impact on supply.With September's output hike now agreed, OPEC+ still has in place one more layer of output cuts that apply to most of the group's members. Those ​roughly 2 million ​bpd in cuts date back to ⁠2022 and are due to remain in place until the end of this year.OPEC+ is carrying out a review of its members' oil production capacity that will be used for the 2027 output baselines from which quotas are ​set.It faces potentially difficult talks over new production quotas, with some members, including Iraq, pushing for higher individual quotas to reflect their higher capacity.OPEC+ includes 21 members, comprising the Organization of the Petroleum Exporting Countries along with Russia and other allies.In recent years only the seven core countries, and the UAE until its departure, have been involved in monthly production management.The seven members will hold their next meeting on September 6.

The increase, decided by the key countries in the enlarged Organisation of the Petroleum Exporting Countries (OPEC), was widely expected by analysts.

Saudi Arabia, Russia and five other key members of OPEC+ agreed in an online meeting Sunday to boost oil production by 188,000 barrels a day from September, against a backdrop of disruption caused by the Mideast war. "The seven participating countries decided to implement a production adjustment of 188 thousand barrels per day," they said in a joint statement.  The increase, decided by the key countries in the enlarged Organisation of the Petroleum Exporting Countries, was widely expected by analysts.

Saudi Arabia, Russia and five other members of OPEC+ are expected to raise their oil production quotas for September when they meet online Sunday as the Middle East war continues to disrupt global energy supplies. The enlarged Organisation of the Petroleum Exporting Countries will likely increase production by 188,000 barrels per day, following several months of similar hikes, said Jorge Leon, an analyst at Rystad Energy. However, the September increase is likely to be the last in the current series of production adjustments, he said.