OPEC+ delegates expect the group to pause oil-production hikes after September.
The group plans to ratify a 188,000 barrel-per-day increase. Delegates will formalize this decision at the August 2nd meeting. Production levels will then remain steady for the remainder of the year.
Producers are adopting a cautious approach as they monitor the U.S.-Iran conflict. Brent crude prices recently surpassed $100 a barrel. Prices subsequently fell below the $90 mark.
Ongoing disruptions to tanker traffic in the Strait of Hormuz create additional supply uncertainty. This pause allows OPEC+ to maintain flexibility through the end of 2026.