The situation in Iran disrupts supply. OPEC+ may suspend production increases after September, and quotas will not be raised during the year

Zhitong Finance App learned that according to two representatives, OPEC+ is expected to suspend subsequent production increase plans after completing the final round of production quota increases in September. The organization is currently closely monitoring the rapidly changing impact of the Iranian situation on supply to assess next steps.

Delegates said that the oil producer coalition is currently planning to formally approve an agreement to raise the September quota by 188,000 barrels per day at an online meeting to be held on August 2. Since they were not authorized to make public statements, the two representatives requested anonymity. After this increase is completed, the current phase of increasing production will come to an end, and there are no plans to increase production further this year.

However, one of the representatives also pointed out that although this is a current plan, it may still be adjusted as the situation changes.

Over the past few months, OPEC has been steadily increasing the crude oil production quotas of member countries, and in May of this year, it drew up a roadmap to increase production that will last until September. However, in reality, due to the impact of the war, the organization's main Middle Eastern member states have been forced to drastically cut production and exports, making this round of increasing production even more a symbolic move.

Amid the intermittent conflict, oil prices fluctuated sharply. Last week, Brent crude oil futures soared above $100 per barrel, but as the US and Iran suspended the exchange of fire, oil prices immediately fell below $90.

During the war, Iran continued to launch attacks on oil tankers in the Strait of Hormuz, causing uncertain production losses. This not only made OPEC+ supply decisions more complicated, but also further increased the volatility of oil prices.

In response to the above news, neither the Saudi Ministry of Energy nor OPEC immediately responded to requests for comment.