OPEC+ Moves to Restore 1.65 Million bpd Oil Cuts by September Amid Middle East Tensions

Key members of OPEC+ are pushing ahead with plans to gradually increase oil production quotas over the next few months, aiming to fully restore the 1.65 million barrels per day (bpd) cuts introduced in 2023 by September. The move comes as global oil markets attempt to balance tight supply conditions, rising geopolitical risks, and volatile energy prices.

According to a Bloomberg report, the oil alliance led by Saudi Arabia and Russia has already agreed to reverse nearly two-thirds of the earlier output cuts and is expected to approve three additional monthly quota increases. However, industry analysts note that much of the planned supply increase remains largely symbolic, as several producers are struggling to raise actual output due to operational and security challenges.

The ongoing conflict involving Iran and tensions across the Middle East continue to disrupt critical export routes, especially around the Strait of Hormuz, one of the world’s most important oil transit corridors. These disruptions have forced several producers to reduce exports and production, limiting the real impact of OPEC+ quota adjustments on global supply levels.

Reports indicate that oil production across major Middle Eastern producers has dropped sharply in recent months. Saudi Arabia’s output reportedly declined to around 6.3 million barrels per day in April, marking its lowest level since 1990, while Kuwait’s production has fallen to nearly a quarter of its pre-conflict levels. Iraq and the United Arab Emirates have also recorded notable declines as security concerns and infrastructure constraints weigh heavily on operations.

Despite the uncertainty, OPEC+ is continuing to refine its long-term production strategy as it prepares for its next policy meeting scheduled for June 7. The alliance is expected to review July production targets while also assessing future capacity levels that could shape oil quotas through 2027. With OPEC nations still accounting for nearly 40% of global crude oil production, investors and energy markets remain closely focused on the group’s next moves as geopolitical tensions continue to influence global supply dynamics.

source: nairametrics