OPEC+ approves oil output increase September

The Organization of Petroleum Exporting Countries (OPEC) and its allies have agreed to raise their collective production quota by 188,000 barrels per day (bpd) beginning in September.

In a statement issued on Sunday, OPEC said the decision followed a virtual meeting involving seven member countries that had introduced additional voluntary production adjustments in April and November 2023.

The participating countries are Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman.

OPEC said the group assessed current global oil market conditions and the outlook before agreeing on the production increase.

Under the new arrangement, Algeria’s quota will rise by 6,000 bpd, Iraq’s by 26,000 bpd, Kuwait’s by 16,000 bpd, Saudi Arabia’s and Russia’s by 62,000 bpd each, Kazakhstan’s by 10,000 bpd, and Oman’s by 5,000 bpd.

“In their collective commitment to support oil market stability, the seven participating countries decided to implement a production adjustment of 188 thousand barrels per day from the additional voluntary adjustments announced in April 2023,” the group said.

The organisation said the revised production levels will take effect in September.

“The seven OPEC+ countries also noted that this measure will provide an opportunity for the participating countries to accelerate their compensation,” the statement reads.

“The seven countries reiterated their collective commitment to achieve full conformity with the Declaration of Cooperation, including the additional voluntary production adjustments that will be monitored by the Joint Ministerial Monitoring Committee (JMMC).

“They also confirmed their intention to fully compensate for any overproduced volume from January 2024.”

OPEC also said the seven countries will continue to meet every month to monitor market developments.

The next OPEC+ meeting is scheduled to take place on September 6.