OPEC+ agrees to increase production quotas by 188,000 barrels per day in September.

OPEC+ members have approved a new round of small production increases, a move that will allow for further increases after the Middle East wars end.

Bloomberg reported that OPEC+ said after a video conference on Sunday (August 2) that the seven member countries, led by Saudi Arabia and Russia, agreed to increase their collective target by 188,000 barrels per day in September.

Despite supply constraints in the region due to the war with Iran, OPEC+ has continued to increase its quotas monthly during the conflict. Bloomberg reported last week that OPEC+ currently plans to maintain its quotas unchanged for the remainder of the year after increasing production in September.

This production increase is currently only symbolic, but once oil shipments in the Persian Gulf return to normal, it could provide Saudi Arabia with room to increase actual production, thereby helping to replenish depleted global inventories. Supply tensions triggered by the conflict are pushing up fuel costs such as gasoline and diesel, exacerbating market concerns about a resurgence of inflation.

If OPEC+ increases supply in the future, it could lead to a recurrence of the brief supply glut that occurred during the US-Iran ceasefire last month. Some forecasters predict that this glut will return later this year.

The UAE withdrew from OPEC+ in May this year due to long-standing dissatisfaction with its production cut policy , sparking speculation that the organization may face competition for market share in the future.

OPEC+ will continue to hold monthly meetings, with the next meeting scheduled for September 6.

According to Xinhua News Agency, Turkey and Iraq signed an agreement on Saturday (1st) to ensure the continued transport of crude oil through the Kirkuk-Ceyhan pipeline from Iraq to Turkey. The agreement is for a period of one year.

Türkiye points out that the Kirkuk-Ceyhan oil pipeline is playing an increasingly important role in the context of the Strait of Hormuz crisis.

Source: [Lianhe Zaobao] (https://www.zaobao.com/news/world/story20260802-9458922)