OPEC+ approves 188,000 bpd oil quota increase for September

A coalition of major oil-producing nations has approved a modest increase in production quotas, completing a phased reversal of supply cuts implemented in 2023. The group of seven countries, led by Saudi Arabia and Russia, agreed during a video meeting on Sunday, August 2, to raise their collective output target by 188,000 barrels per day starting in September.

The decision continues a series of incremental monthly increases that began earlier this year. It marks the final step in unwinding a voluntary supply reduction of either 1.65 million or 2.2 million barrels per day, depending on the accounting method, that was agreed upon in late 2023. The nations involved are Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman.

Officials indicated that after the September adjustment, no further quota increases are planned for the remainder of the year. This pause will leave in place approximately 2 million barrels per day of production cuts that date back to 2022. The halt is intended to give the alliance time to assess global oil demand and prepare for complex negotiations over future production baselines.

In practice, many of the recent quota hikes have been largely...