OPEC+ Approves 188,000 Barrel Daily Output Increase for July
OPEC+ agreed Sunday to raise its collective crude production by 188,000 barrels per day starting in July. The decision adds to earlier increases approved since April that total nearly 600,000 barrels daily.
freepressjournal.inOPEC+ decided Sunday to increase its collective crude output by 188,000 barrels per day beginning in July. The group has approved a series of production increases totaling close to 600,000 barrels daily since April. Reuters reported that the latest addition brings the cumulative approved hikes to that level.
Many large Middle East producers have been unable to restore output to pre-war levels because of the continued closure of the Strait of Hormuz. The approved increases have therefore remained largely on paper. A former OPEC official now at Rystad Energy told Reuters that an OPEC+ production increase means very little while the Strait of Hormuz remains closed.
The same analyst added that once the strait reopens, the market could move quickly from fear of shortage to fear of oversupply.
