OPEC+ Moves Ahead with Oil Output Increase Amid Iran War Uncertainty

By Staff, Agencies

The Organization of the Petroleum Exporting Countries and its allies [OPEC+] approved another oil production increase for September, continuing the gradual return of voluntarily withheld supply despite uncertainty caused by the war on Iran.

Seven members — Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman — agreed to raise output by around 188,000 barrels per day, marking the sixth consecutive monthly increase and completing the reversal of 1.65 million barrels per day in voluntary cuts introduced in 2023.

However, wider OPEC+ cuts of around 2 million barrels per day from 2022 will remain until the end of the year.

Analysts said ongoing disruptions in the Gulf could prevent some planned increases from being fully implemented and may complicate future quota discussions.

Meanwhile, the war in West Asia has added pressure on OPEC+ unity, with members set to review production levels and capacity assessments for future quotas. The group is expected to monitor market conditions before deciding whether to continue raising output.

Oil prices saw their strongest monthly rise since March after renewed US war against Iran raised concerns over supply disruptions, particularly around the Strait of Hormuz, a key global energy route.