OPEC’s Lackluster Quota Hike Won’t Solve Oil Market Tightness

Yesterday, OPEC and its partners led by Russia agreed to increase their combined oil production by 100,000 bpd in September. Reports note that the decision follows calls from the U.S. and other big consumers for more oil. However, 100,000 additional barrels daily will probably not be enough to lower prices much further. The production increase agreement followed a deal to add about 430,000 bpd every month until August this year to reverse the deepest production cuts in history, implemented in 2020 and totaling 9.7 million barrels daily. It also…