OPEC+ has reached a preliminary agreement to raise oil production quotas by approximately 188,000 barrels per day starting in September, with plans to pause further increases in the fourth quarter.
A source familiar with the negotiations confirmed the deal on Sunday, marking the next step in the cartel’s methodical reversal of previous output restrictions.
The decision underscores the group’s cautious approach to balancing market stability with the need to regain market share.
By limiting the increase to a modest volume and capping it with a Q4 pause, producers aim to avoid flooding the market while signaling a return to normalcy.
This incremental strategy contrasts with more aggressive supply expansions seen in previous cycles.
For traders, the news introduces a nuanced supply dynamic.