OPEC+ is expected to suspend increases to production quotas after completing its final adjustment in September, as the alliance of oil-producing nations continues to evaluate the rapidly shifting impact of the Iran war on global petroleum supply.
According to two delegates cited by Bloomberg, the group currently plans to approve an agreement during an online meeting on August 2nd, raising the September oil production quota by 188,000 barrels per day. This increase would complete the current round of output hikes, with no further plans to raise production for the remainder of the year. However, specific arrangements may be adjusted based on changing circumstances.
For several months, the Organization of the Petroleum Exporting Countries (OPEC) has been gradually increasing the amount of oil its members are permitted to produce. A roadmap established in May of this year outlined the continuation of these output increases through September.
In reality, the Iran war has rendered many of these output increases more symbolic in nature, as key Middle Eastern members of the group have been forced to cut some of their own production and exports.
During the conflict, Iran has been attacking tankers in the Strait of Hormuz. The resulting uncertainty over the scale of oil supply losses has made it more difficult for OPEC+ to formulate production policy, further exacerbating price volatility.
Throughout the intermittent conflict, international oil prices have fluctuated wildly. Last week, Brent crude futures briefly surged above $100 per barrel. However, following a ceasefire between the United States and Iran, prices fell for three consecutive days, standing at $82 per barrel at the time of this report.
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