OPEC+ countries are expected to agree on another increase in target oil production starting in September. The decision could be made at the alliance's meeting on August 2, according to three sources familiar with the discussions, reports the website infohub.kz.
According to Reuters, seven countries participating in voluntary production cuts — Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman — are considering raising quotas by about 188,000 barrels per day. A similar increase was already approved for June, July and August.
A final decision has not yet been made. Reuters sources noted that discussions are ongoing; OPEC and Russian officials did not respond to requests for comment.
In recent months, the alliance has been gradually returning previously cut volumes to the market, aiming to restore its market share. However, the implementation of these plans is complicated by the situation in the Middle East. The military conflict involving Iran has disrupted oil exports from Gulf countries, and Houthi attacks in the Red Sea have increased risks for maritime shipments.
Against this backdrop, global oil prices have again approached $100 per barrel after the collapse of preliminary agreements between the US and Iran, which had previously facilitated increased supplies through the Strait of Hormuz.
According to OPEC data, the alliance produced 36.28 million barrels per day in June, compared with nearly 43 million barrels per day in February before the conflict escalated.
As Reuters notes, if the September increase is approved, OPEC+ will effectively complete the unwinding of the voluntary production cuts agreed in 2023, taking into account the United Arab Emirates' exit from the organization.