The major oil producers of the Organization of Petroleum Exporting Countries and its partners have agreed in principle to again symbolically raise oil production quotas in September. The move aims to complete the oil supply recovery process that was interrupted in 2023 and lay the foundation for an actual increase in production after the end of the Middle East War. The seven core member states, led by Saudi Arabia and Russia, are expected to agree to increase the collective oil production target by another 188,000 barrels per day next month, two representatives revealed before a video conference held on Sunday. Although the actual oil supply in the region is currently limited by geographical conflicts, OPEC+ insisted on increasing nominal production quotas every month during the Iran war. The analysis points out that although the current increase in production is more symbolic, once oil supply in the Persian Gulf returns to normal, Saudi Arabia can use this policy space to increase actual production, thereby helping to replenish the world's depleted oil stocks. Currently, supply constraints caused by the conflict are driving up fuel prices such as gasoline and diesel, increasing market concerns about soaring inflation. At the diplomatic level, US President Trump said this weekend that the US will suspend new attacks on the Islamic Republic of Iran and other Middle Eastern countries after Iran and other Middle Eastern countries say they are working hard to reach an agreement. The final increase in OPEC+ supply is expected to rekindle the brief oil surplus situation that occurred during the US-Iran cease-fire last month. Some forecasters expect this situation to reoccur later this year.

The major oil producers of the Organization of Petroleum Exporting Countries and its partners have agreed in principle to again symbolically raise oil production quotas in September. The move aims to complete the oil supply recovery process that was interrupted in 2023 and lay the foundation for an actual increase in production after the end of the Middle East War. The seven core member states, led by Saudi Arabia and Russia, are expected to agree to increase the collective oil production target by another 188,000 barrels per day next month, two representatives revealed before a video conference held on Sunday. Although the actual oil supply in the region is currently limited by geographical conflicts, OPEC+ insisted on increasing nominal production quotas every month during the Iran war. The analysis points out that although the current increase in production is more symbolic, once oil supply in the Persian Gulf returns to normal, Saudi Arabia can use this policy space to increase actual production, thereby helping to replenish the world's depleted oil stocks. Currently, supply constraints caused by the conflict are driving up fuel prices such as gasoline and diesel, increasing market concerns about soaring inflation. At the diplomatic level, US President Trump said this weekend that the US will suspend new attacks on the Islamic Republic of Iran and other Middle Eastern countries after Iran and other Middle Eastern countries say they are working hard to reach an agreement. The final increase in OPEC+ supply is expected to rekindle the brief oil surplus situation that occurred during the US-Iran cease-fire last month. Some forecasters expect this situation to reoccur later this year.