Key facts
- OPEC+ plans to increase production quotas by approximately 188,000 barrels per day starting in September.
- This increase marks the completion of the unwinding of voluntary cuts previously agreed upon.
- Following the September adjustment, the group is expected to pause further output increases for the remainder of the year.
- OPEC+ is undertaking a review of members' oil production capacities to establish new baselines for 2027 quotas.
- Certain member nations, such as Iraq, are seeking higher individual quotas to reflect their increased production capabilities.
OPEC+ is poised to approve an increase in production quotas by approximately 188,000 barrels per day for September, according to sources. This move signifies the completion of the phased rollback of a 1.65 million bpd supply cut initially agreed upon in 2023. Following this adjustment, the alliance is expected to pause any further output increases for the remainder of the year.
The group, comprising seven core members including Saudi Arabia, Russia, and Iraq, has been gradually increasing monthly production quotas throughout the year. However, these increases have largely remained on paper due to disruptions in exports from regions like the Gulf, Russia, and Kazakhstan, stemming from the conflicts in Iran and Ukraine.
This planned pause after September will leave approximately 2 million barrels per day of OPEC+ cuts from 2022 in place. The decision comes as the alliance faces potentially challenging discussions regarding new production quotas. Some members, notably Iraq, are advocating for higher individual quotas, citing increased production capacity.
OPEC+ is also currently conducting a review of its members' oil production capacities. This review is intended to establish new output baselines for 2027, from which future quotas will be determined.