Saudi Arabia, Russia, and five other OPEC+ members decided during a virtual meeting held on Sunday to increase their oil production quotas for September amid the conflict in the Middle East, according to AFP and Reuters.

"The seven participating countries decided to implement a production adjustment of 188,000 barrels per day," a volume similar to that of previous months, the Organization of the Petroleum Exporting Countries (OPEC) announced, without mentioning any pause in this cycle of increases, although analysts had widely anticipated such a measure.

The war in the Middle East has affected production in the Gulf countries, which have been forced to reduce output due to the blockade of the Strait of Hormuz. Maritime traffic in the region rebounded following the signing of the memorandum of understanding between Iran and the U.S. in June, which, according to OPEC data, led to an increase in production compared to May.

However, the resumption of hostilities in the Middle East in July, has caused a further decline in maritime traffic through the Strait of Hormuz and heightened risks in the Red Sea—developments that will most likely lead to a decrease in the number of barrels produced.

In addition, Russia—whose oil infrastructure is frequently targeted by Ukrainian drone attacks—is struggling to maintain production near the level of 9 million barrels per day (mb/d), compared to its current target of 9.8 mb/d.

“For now, geopolitical factors are masking the extent of the increase in supply (provided by OPEC+). This will become much more evident once export flows normalize,” noted analyst Jorge Leon of Rystad Energy.

AGERPRES