The Organisation of the Petroleum Exporting Countries and its allies (OPEC+) has approved a further increase in crude oil production for September, completing the phased reversal of a major voluntary output cut introduced in 2023 to stabilise global oil markets.
At its meeting on Sunday, the alliance agreed to increase production by approximately 188,000 barrels per day (bpd) for key producers, including Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman.
The latest adjustment marks the full restoration of the 1.65 million bpd voluntary production cut adopted in 2023 to support oil prices. The United Arab Emirates, which was initially part of the arrangement, exited OPEC in May.
Despite several monthly production increases this year, OPEC+ noted that additional supplies have had limited impact on global markets due to export disruptions in the Gulf, Russia and Kazakhstan caused by geopolitical conflicts involving Iran and Ukraine.
The alliance did not announce any production plans for October through December, although analysts had expected a pause in output increases during the final quarter of the year. OPEC+ is expected to monitor market conditions and any potential supply surplus before making further production decisions.
Following the meeting, oil prices rose, with Brent crude—Nigeria’s benchmark—settling at $90.12 per barrel, while U.S. West Texas Intermediate (WTI) crude closed at $84.67 per barrel. Both benchmarks gained more than one per cent after declining by over five per cent the previous week.
The Joint Ministerial Monitoring Committee (JMMC), which oversees compliance with OPEC+ production agreements, also expressed concern over recent attacks on energy infrastructure linked to the ongoing conflict involving Iran, warning that damage to critical facilities could disrupt global oil supplies and require significant investment to repair.
Although the voluntary production cuts have now been fully reversed, OPEC+ retains an additional 2 million barrels per day in production cuts introduced in 2022. Those reductions are expected to remain in place until the end of 2026.
The alliance is also reviewing the production capacity of member countries ahead of negotiations on new output baselines that will determine production quotas from 2027. Countries including Iraq are expected to seek higher production allocations to reflect expanded production capacity.
OPEC+ comprises 21 oil-producing nations, including members of OPEC and non-OPEC partners led by Russia. The group’s core producers are scheduled to hold their next meeting on September 6 to review market conditions and production policy.
