OPEC+ to Pause Oil Output Increases After September
OPEC+, a coalition including OPEC members and major non-member oil producers like Russia, is expected to pause its phased output increases after September. The group has been gradually raising production since the war with Iran disrupted global supply chains. However, Reuters reports that no further changes are planned for this year. This decision comes as several key members struggle to meet their quotas due to ongoing disruptions. The potential impact on oil stocks is significant given current market conditions. With continued disruption at the Strait of Hormuz and rising crude prices—Goldman Sachs has warned oil could exceed $120 per barrel in the near term—oil companies may benefit from higher revenues. Additionally, if Iraq leaves OPEC due to production constraints, it could open new opportunities for U.S. firms like Chevron and ConocoPhillips operating there. Chevron is pursuing agreements that would allow it greater control over Iraqi oil fields, including West Qurna 2, while ConocoPhillips recently acquired a stake in BP Energy Company of Kirkuk to develop large-scale oil projects.
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