OPEC+ Plans to Pause Production Quota Increases

OPEC+ is reportedly planning to pause further increases in oil production quotas after the final increase scheduled for September. Delegates said the producer group plans to approve an agreement at its online meeting on August 2 to increase the September production quota by 188,000 barrels per day. With this increase, the current production increase cycle will be completed, and no further increases are planned for this year. One delegate said this is the current plan but noted that it could change depending on market conditions.

Oil prices have remained highly volatile throughout the intermittent conflict. Futures prices rose above $100 per barrel last week but fell below $90 after a pause in hostilities between the United States and Iran. The U.S. war against Iran significantly disrupted production in the Middle East, meaning it may take some time before the effects of the quota adjustments become apparent.

Saudi Arabia's Ministry of Energy and OPEC have not yet commented on the matter.