Commodities
Home›Commodities›Energy›OPEC+ may lift September output targets as shipping ri…
OPEC+ may lift September output targets as shipping risks persist
A Reuters calculation points to an additional 188,000 barrels per day increase for Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman, even as June production fell to 36.3 million bpd.
OPEC+ is expected to approve another increase to its September oil production targets when eight key member countries meet on August 2, extending a campaign to unwind voluntary supply cuts, according to OilPrice citing Reuters.
The planned rise is reported to total 188,000 barrels per day across Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman. Reuters also notes that official quotas have been rising while actual production has moved lower, with OPEC data showing the group produced 36.28 million barrels per day in June, down from nearly 43 million bpd in February before the Iran war.
Shipping disruptions have limited some Gulf producers from restoring exports despite higher targets. Repeated disruptions through the Strait of Hormuz, and renewed attacks on vessels in the Red Sea, have kept supply recovery uneven, while Brent crude topped $100 per barrel on Thursday as concerns resurfaced about traffic through the Bab el-Mandeb Strait.
If approved, the September increase would complete the rollback of a 1.65 million bpd voluntary production cut adopted in 2023, adjusted for the UAE's earlier departure from OPEC, OilPrice said, citing Reuters calculations.
Latest closeWTI crude $92.23 ▲6.2%|Brent $100.54 ▲6.9%