OPEC+ Completes 2023 Cut Rollback with Sixth Monthly Output Hike
On Sunday, seven key members of OPEC+ reached an agreement to boost oil production by 188,000 barrels per day beginning in September. This decision marks the sixth consecutive month of increases and finalizes the reversal of production cuts made in 2023. The nations participating in this agreement include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. This adjustment concludes the rollback of a 1.65 million barrel-per-day reduction from earlier this year, while a separate cut of 2 million barrels per day from 2022 remains in effect until the end of the year. OPEC+ is scheduled to convene on September 6 to evaluate production for October. Brent crude ended at $90.12 per barrel, and West Texas Intermediate settled at $84.67.
Key facts
- Seven OPEC+ members agreed to raise output by 188,000 barrels per day starting in September.
- This is the sixth consecutive monthly increase, completing the rollback of 2023 voluntary cuts.
- Participating countries: Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman.
- The 2023 cut reversal ends a 1.65 million barrel-per-day reduction.
- A separate 2 million barrel-per-day cut from 2022 remains through end of year.
- Supply disruptions in Russia, Kazakhstan, and the Gulf have limited actual output increases.
- President Trump called off a planned attack on Iran after terms to reopen the Strait of Hormuz.
- Next meeting scheduled for September 6 to determine October production levels.
- OPEC+ is assessing members' production capacity for 2027 quotas.
- The UAE left OPEC in May; Iraq has threatened to leave unless given a larger allowance.
- Brent crude closed at $90.12, WTI at $84.67, both up over 1% on the day.
- Both contracts lost more than 5% for the week.
Entities
Institutions
- OPEC+
- OPEC
- CNBC
- Wall Street Journal
Locations
- Saudi Arabia
- Russia
- Iraq
- Kuwait
- Kazakhstan
- Algeria
- Oman
- Iran
- Ukraine
- United Arab Emirates
- Strait of Hormuz
Sources
- Quartz —