OPEC+ Agrees to September Oil Production Hike, Completing Rollback of Voluntary Cuts
OPEC+ has approved an increase in oil production by approximately 188,000 barrels per day starting from September. This decision marks the completion of a phased rollback of voluntary supply cuts initially agreed upon in 2023 when the United Arab Emirates was still part of OPEC. Despite previous monthly hikes this year, export disruptions caused by conflicts in Iran and Ukraine limited their market impact. Analysts suggest that while there is potential for a pause in output increases during the fourth quarter as supply normalizes, no specific decisions have been made yet regarding 2026 production levels. OPEC+ will also review members' oil production capacity to set new quotas by 2027, with some countries like Iraq seeking higher individual allocations. Oil prices rose on Friday following an Iranian attack near the Strait of Hormuz but fell more than 5% for the week amid expectations that Middle East tensions might de-escalate.
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