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Market Chatter: OPEC+ Plans to Fully Restore Production Targets by September

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Key members of the Organization of the Petroleum Exporting Countries and their allies aim to further increase production quotas in three monthly stages to fully restore the 2023 supply cutback of 1.65 million barrels per day by the end of September, Bloomberg reported Thursday, citing three delegates.

After the last agreement to increase production targets by 188,000 b/d for June, the group has so far decided to restore about two-thirds of the halted output.

The delegates told the news agency that the remaining layer will be revived despite shipping constraints in the Persian Gulf and Abu Dhabi's exit from the organization, which alone removes 144,000 b/d of the original supply cut.

The effective closure of the Strait of Hormuz following the onset of the US-Iran war has restricted Middle Eastern producers' ability to export oil, thereby cutting their own crude production.

OPEC leader Saudi Arabia has reduced its output to its lowest since 1990 at 6.3 mmb/d in April, while Kuwait, Iraq, and the UAE also reported production declines versus pre-war levels.

While the planned supply increases may not materialize physically due to restrictions, OPEC+ reportedly continues to review its production policies. The alliance is set to meet on June 7 to discuss their plan for July.

OPEC+ also continues to review its members' maximum production capacities to better calibrate quotas in 2027, according to the sources cited by the news agency. The assessment, conducted by Dallas-based consultant DeGolyer and MacNaughton, began in 2025.

The organization did not immediately respond to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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