The Organisation of the Petroleum Exporting Countries and its allies (OPEC) agreed to raise oil output again as shipping traffic through the Strait of Hormuz gradually recovers and Persian Gulf producers restore production.
After a virtual meeting on Sunday, the seven-member group said it would raise production by about 188,000 barrels a day in August, marking a fifth straight monthly increase as the cartel continues to unwind production cuts introduced in recent years. The seven countries participating in the increase include Saudi Arabia alongside Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman.
These seven core members of OPEC+ have hiked their output quotas from April through July by almost 800,000 barrels per day, but the increase has remained largely on paper because of the US-Israeli war on Iran, which closed the Strait of Hormuz to tanker traffic for some of the most important OPEC+ members, including Saudi Arabia, Kuwait and Iraq.
This expected increase matches the hike agreed for June, which was revised down from an initial 206,000 barrels per day following the exit of the United Arab Emirates (UAE) from the group in May.
This measure will provide an opportunity for the participating countries to accelerate their compensation, the seven countries noted during the meeting.
They also noted that additional voluntary adjustments announced in April 2023 may be returned in part or in full, subject to evolving market conditions and in a gradual manner.
The alliance said it would continue to closely monitor and assess market conditions and have regular monthly meetings, starting on August 2, 2026.
In the meantime, OPEC+ output fell to 33.13 million barrels per day in May, according to OPEC data, from 42.77 million barrels per day in February. It began to recover in June thanks to US efforts to help the UAE and other OPEC+ nations export more oil, but is still below pre-war levels.
