OPEC+ tipped to raise production again but new quotas loom

Saudi Arabia, Russia, and five other members of OPEC+ are expected to raise their oil production quotas for September. The increase is predicted to be 188,000 barrels per day, according to Jorge Leon, an analyst at Rystad Energy. This would follow several months of similar hikes.

The production increase is likely to be the last in the current series of adjustments, Leon said. OPEC+ had previously cut oil production in three separate rounds between late 2022 and 2023, reducing total output by nearly six million barrels per day, due to concerns that oil prices were falling.

Many OPEC+ members currently cannot produce as much oil as their official targets allow due to a decline in production capacity, so increasing targets may not necessarily lead to higher production. The September increase would complete the unwinding of the second of the three production-cut packages introduced by OPEC+, Free Malaysia Today reports.

Brief written by urgent.news from Al-Monitor, Free Malaysia Today — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.