OPEC+ plans to halt the increase in oil production quotas after September as it continues to assess the rapidly changing impact of the war with Iran on global supply, two delegates told Bloomberg.
According to them, the producers' alliance is currently set to approve an increase of the production quota by 188,000 barrels per day at an upcoming virtual meeting. This will conclude the current phase of increases, and no new hikes are expected this year.
At the same time, one delegate noted that this plan could change depending on the situation's developments.
The Organization of the Petroleum Exporting Countries has been gradually increasing the production volumes allowed for its members for several months and had confirmed a schedule in May that aimed to continue raising quotas until September.
However, in practice, the war has rendered these steps largely symbolic, as key members of the group in the Middle East have been forced to cut significant volumes of production and exports.
Amidst the tensions and relative pauses in the conflict, oil prices continue to remain highly volatile. Last week, the price of Brent crude futures exceeded $100 per barrel, but after a ceasefire between the US and Iran, it fell back below $90.
During the conflict, Tehran has attacked oil tankers passing through the Strait of Hormuz, creating uncertainty around supplies and complicating OPEC+'s decisions regarding production volumes, intensifying oil price fluctuations.
The Saudi Arabian Ministry of Energy did not respond to a request for comment, and OPEC also did not answer phone calls.
