OPEC+ is likely to increase oil production again in September and then take a pause, according to Bloomberg, citing delegates familiar with the matter.
Risk of oversupply may prevent OPEC+ from reversing production cuts
“This suggests a production increase of a further 550,000 barrels per day in September. The withdrawal of voluntary production cuts of nearly 2.2 million barrels per day and the increase in oil production of 300,000 barrels per day granted to the United Arab Emirates would then be complete.”
“The remaining production restrictions of 3.66 million barrels per day from 2022 and 2023 are still in place until the end of 2026. This decision can only be changed at the next OPEC+ meeting at the end of November, when oil production for 2026 will be determined.”
“The risk of oversupply from autumn onwards is likely to prevent OPEC+ from reversing these production cuts next year.”
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