The Organization of the Petroleum Exporting Countries (OPEC) is expected to approve an increase in oil production of around 188,000 barrels per day from September, as the group moves toward completing the reversal of voluntary output cuts.
After the September increase, OPEC is likely to halt further production increases for the remainder of the year, as members prepare for potentially difficult negotiations over future production quotas, according to Reuters.
OPEC’s production moves
The seven key OPEC members — Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman — had introduced monthly production increases for most of the current year.
However, many of those planned increases remained largely theoretical, as wars in Iran and Ukraine disrupted exports from the Gulf region, Russia, and Kazakhstan.
The September decision would mark the completion of the gradual phaseout of a 1.65 million barrels-per-day supply reduction that was originally agreed in 2023, when the United Arab Emirates was still part of OPEC. The UAE left the organization in May.
Production quotas under review
Following September, the group is expected to pause additional increases while it conducts a review of members’ oil production capacity.
The assessment will be used to establish the baseline production levels for 2027, which will determine future quotas.
The pause would leave around 2 million barrels per day in OPEC production cuts that date back to 2022, until the organization decides how to distribute additional supply among its members.
