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OPEC+ Approves Third Consecutive 188,000 bpd Output Hike
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) has approved another 188,000 barrels per day (bpd) increase in oil production quotas for August 2026, continuing its phased plan to gradually restore crude supplies.
The decision was announced after a virtual meeting of seven members—Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman.
The August adjustment mirrors the 188,000 bpd hikes approved for June and July, marking the third consecutive monthly increase of the same volume.
OPEC+ said the phased increases are designed to support market stability, but stressed that adjustments could be paused, reversed, or expanded depending on evolving conditions. “Production adjustments may be returned in part or in full subject to market conditions,” the group noted.
The alliance reaffirmed its commitment to the Declaration of Cooperation, saying the latest increase would help countries compensate for past overproduction and ensure compliance.
Nigeria continues to work toward meeting its fiscal targets, with combined crude and condensate production averaging 1.73 million bpd in May 2026. However, the NNPC Ltd. reported weaker financial performance, with revenue falling to ₦4.335 trillion in May from ₦4.97 trillion in April, reflecting softer oil market conditions.
For 2026, the Federal Government set a benchmark of 1.84 million bpd, with an upper target of 2.06 million bpd, based on an oil price of $64.85 per barrel. But Brent crude traded at around $72 per barrel on Friday, far below the highs of over $120, raising concerns that increased OPEC+ output could further pressure prices.
Analysts warn that while the phased increases aim to stabilise supply, they could weigh on revenues for oil-exporting countries like Nigeria, which remains heavily dependent on crude sales for government income.
