OPEC announce plans to increase its output in September
OPEC+ will increase their oil production quota to around 188,000 barrels per day.
OPEC+ has decided to press ahead with plans to increase its oil production despite ongoing supply chain issues in the Strait of Hormuz and the Rea Sea.
OPEC+ approved the quota increase on Sunday, that will see production increase to around 188,000 barrels per day.
The decision by OPEC+ essentially unwinds the layer of voluntary output cuts that were introduced in April, 2023.
Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman would be seen as the core members of OPEC+.
However, disruptions to exports as a result of the US-Iran and Russia-Ukraine wars have impacted business.
OPEC was dealt another blow when the UAE decided to pull out of the group in April, 2026.
That has allowed the UAE to increase its output, and enabled ADNOC deepen its global supply links.
Reuters have reported that OPEC+ sources believe the group will more than likely pause further output increases in the fourth quarter.
OPEC+ also held a separate meeting entitled the Joint Ministerial Monitoring Committee.
That meeting looked at ways OPEC could negate the impact of the ongoing US-Israel war with Iran, that is having huge ramifications in terms of shipping across the Arabian Gulf.
It has forced many GCC states to rethink their future supply chains, with the UAE set to overhaul its ports in Fujairah to increase its capacity and reduce it dependency on the Hormuz to zero.
OPEC+ still has one more layer of output cuts in place.
Those cuts equate to around 2 million bpd and stretch as far back as 2022.
They are expected to remain in place until the end of 2026.
OPEC+ is carrying out a review of its members’ oil production capacity that will be used for the 2027 output baselines from which quotas are set.
It faces potentially difficult talks over new production quotas, with some members.
Iraq is pushing for higher individual quotas to reflect their higher capacity.
OPEC+ includes 21 members, comprising the Organisation of the Petroleum Exporting Countries along with Russia and other allies.
OPEC+ will next meet on September 6.
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