OPEC+ announced an oil production increase of 548,000 barrels per day for September.
The move was widely expected after the group began taking bigger steps to unwind its production curbs over the summer. Initially, OPEC communicated an 18 month plan to slowly unwind production but it since stepped up the pace and now the entire 2.2 million barrels per day curb announced in 2023 is done.
In addition, the UAE has been granted a higher baseline by 0.3 mbpd over the past six months.
In the US, drilling rig counts have been tumbling in recent months with oil prices capped below $70 and tier-1 inventory depleting. There is no further help coming from OPEC either with the group holding back 1.65 mbpd and that will be reviewed before year end (or as soon as the Sept 7 meeting), according to reports following this meeting.
That final detail could further weigh on oil prices in the week ahead after the $2 drop on Friday.
WTI crude oil daily chart
