London, Aug. 2 (SANA) OPEC+ is expected to approve a production increase of about 188,000 barrels per day from September before pausing further output hikes, according to sources, completing the reversal of the alliance’s voluntary production cuts agreed in 2023.
Reuters, citing sources familiar with the discussions, reported that the seven core OPEC+ members have agreed to raise production quotas each month for most of this year. However, much of the additional output has yet to materialize because conflicts involving Iran and Ukraine have disrupted exports from Gulf producers, Russia and Kazakhstan.
The seven countries are Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman.
An OPEC+ delegate and another source told Reuters that the alliance is expected to suspend further production increases after September while members negotiate new production quotas that could prove contentious.
The planned September increase would complete the phased reversal of 1.65 million barrels per day in voluntary cuts introduced in 2023, when the alliance still included the United Arab Emirates, before its withdrawal from the Organization of the Petroleum Exporting Countries (OPEC) in May.
OPEC+ is currently reviewing members’ production capacity to establish new baseline output levels for 2027, which will serve as the basis for future production quotas.
Pausing additional increases after September would leave in place separate production cuts totaling about two million barrels per day that were introduced in 2022 until the group reaches agreement on revised quotas.
Several members, including Iraq, are seeking higher individual production quotas to reflect expanded production capacity.
Separately, a source familiar with the matter told Reuters that Kuwait raised its crude oil output to an average of 1.971 million barrels per day in July, up from about 1.65 million barrels per day in June.
N.J/ABD
