Saudi, Russia-led OPEC+ agree to raise oil output by 188,000 bpd in September

Seven key OPEC+ producers, led by Saudi Arabia and Russia, have agreed to raise crude oil production by a combined 188,000 barrels per day (bpd) in September as they continue the phased unwinding of voluntary output cuts.

The decision was taken during a virtual meeting on Sunday of Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman, which had earlier announced additional voluntary production cuts in April and November 2023.

The group said the production adjustment of 188,000 bpd for September would be implemented under the schedule for easing the earlier voluntary curbs.

Under the agreed allocation, Saudi Arabia and Russia will each increase production by 62,000 bpd, Iraq by 26,000 bpd, Kuwait by 16,000 bpd, Kazakhstan by 10,000 bpd, Algeria by 6,000 bpd and Oman by 5,000 bpd.

The countries said the increase would also provide an opportunity to accelerate compensation for excess production by members that had produced above their agreed quotas since January 2024. “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),” the statement said.

The seven countries said they would continue to hold monthly meetings to review market conditions, with the next meeting scheduled for September 6.

The latest OPEC+ decision comes after the United Arab Emirates exited both OPEC and the wider OPEC+ alliance with effect from May 1, seeking greater flexibility over its production policy.

The UAE has said it will continue supplying crude oil in a gradual and measured manner in line with global demand and market conditions.

Meanwhile, the 67th meeting of the JMMC reviewed global oil market conditions and stressed the importance of the OPEC+ production pact in supporting energy market stability.

The committee highlighted the need to safeguard international maritime routes to ensure uninterrupted energy supplies and expressed concern over attacks on energy infrastructure, saying restoring damaged facilities is costly and time-consuming and could affect overall supply availability.

It warned that attacks on energy infrastructure or disruptions to international shipping routes increase market volatility and undermine collective efforts to support market stability for producers, consumers and the global economy.