The Organisation of the Petroleum Exporting Countries and its allies (OPEC+) has approved a 188,000 barrels per day (bpd) increase in oil production quotas for September.
This marks the fourth consecutive monthly output hike as the group continues unwinding supply cuts introduced in 2023.
The decision was announced after a virtual meeting involving seven key members led by Saudi Arabia and Russia.
The September increase completes the reversal of one layer of production cuts introduced in 2023, when OPEC+ sought to prevent a global oil glut.
The producer group is also expected to keep production quotas unchanged for the rest of the year after the September increase as it assesses global market conditions.
The latest adjustment extends OPEC+’s gradual strategy of restoring crude supplies to the global market, even as ongoing tensions involving Iran continue to disrupt oil production and exports across parts of the Middle East.
OPEC+ has continued raising production quotas despite the conflict involving Iran because the approved increases have had limited impact on actual oil supply.
Several member countries have struggled to increase production to their permitted levels due to technical constraints, sanctions, and disruptions affecting oil flows through the Persian Gulf and the Strait of Hormuz.
The September increase provides additional flexibility for major Gulf producers, particularly Saudi Arabia, to raise output once regional oil flows normalise.
The alliance is expected to pause further production increases after September, although the plan could still change depending on market conditions and geopolitical developments.
