OPEC+ plans to pause oil-production quota hikes after a final increase in September, according to two delegates who spoke on condition of anonymity. The decision is based on evaluating the impact of the Iran war on oil supply, the delegates said.
The final increase in September is expected to be 188,000 barrels per day (BPD). This move will complete the current production increase cycle, with no new quota increase planned for the rest of the year, the delegates added.
OPEC+ will hold an online meeting on 2 August to approve the September increase, one delegate confirmed. The pause is the current plan but could change based on market conditions, the same delegate said.
Oil prices recently fluctuated, rising above $100 per barrel last week before falling below $90 per barrel, according to market data. Goldman Sachs warned that oil could top $120 a barrel in the near term and average $100 next year if current disruptions persist.
Industry sources claim that the September increase marks the end of a phased rollback of a 1.65 million BPD supply cut agreed by OPEC+ in 2023.