OPEC+ has approved a further increase in its oil production target, raising output by 188,000 barrels per day (bpd) from August, the alliance announced in a statement on Sunday.
Gatekeepers News reports that the latest increase follows similar production hikes for June and July, adding more crude to global markets at a time when oil prices have eased following the gradual reopening of the Strait of Hormuz to oil exports.
The seven core members of OPEC+—the coalition of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia—have increased their combined production quotas by nearly 800,000 bpd between April and July.
However, much of the planned increase has remained unrealised due to the U.S.-Israeli war with Iran, which disrupted tanker traffic through the Strait of Hormuz, a critical export route for major producers such as Saudi Arabia, Kuwait and Iraq.
According to OPEC data, the group’s oil output fell from 42.77 million bpd in February to 33.13 million bpd in May. Production began recovering in June following U.S. efforts to assist the United Arab Emirates and other OPEC+ producers in exporting more crude, although output remains below pre-war levels.
Despite continued supply disruptions, oil prices have retreated to levels seen before the conflict. The decline has been driven by weaker Chinese imports, increased exports from producers outside the Middle East, and a record coordinated release of strategic oil reserves by the International Energy Agency.
A memorandum of understanding between Washington and Tehran aimed at ending the conflict has also boosted market confidence that global oil supplies will eventually stabilise.
Brent crude traded near $72 per barrel on Friday, down sharply from recent highs above $120 per barrel and back to levels recorded before the U.S. and Israel launched attacks on Iran on February 28.
Beyond production decisions, OPEC+ is also dealing with internal challenges following the United Arab Emirates’ exit from the alliance and Iraq’s push for higher production quotas.
Although OPEC+ comprises 21 member countries, only seven producers—Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman—have been responsible for the group’s monthly production management in recent years. The UAE also participated before leaving the alliance.
The seven producers are gradually reversing a 1.65 million bpd voluntary supply cut agreed in 2023, when the UAE was still a member of the group.
The UAE formally exited OPEC+ in late April, citing a desire to align its production more closely with its capacity without the restrictions imposed by the alliance.
Reuters calculations show that from August, after accounting for the UAE’s departure on May 1, the seven remaining core members will still have about 379,000 bpd of the original production cut left to restore to the market.
