OPEC+ to Raise Oil Output by 188,000 Barrels a Day in August

Seven OPEC+ members agreed on Sunday to raise combined oil output by 188,000 barrels a day beginning in August. The decision follows a virtual meeting of officials from Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman. Saudi Arabia and Russia will each add 62,000 barrels a day, the largest shares of the increase.

It continues a gradual unwinding of voluntary cuts first announced in 2023.

Brent crude traded below $72 a barrel on Sunday night, near levels seen before the U.S. and Israel launched strikes on Iran in late February. WTI stood around $68. The price decline follows an interim memorandum of understanding signed June 17 that reopened the Strait of Hormuz to commercial traffic and ended a U.S. naval blockade of Iranian ports.

Traffic through the strait remains well below pre-war levels. MarineTraffic recorded 38 confirmed transits on July 2, compared with roughly 130 daily crossings before the conflict.

Actual output by OPEC+ members fell sharply during the war because storage constraints and shipping limits prevented barrels from reaching buyers. Total production dropped to 33.13 million barrels per day in May from 42.77 million in February. The group said it will continue monitoring market conditions and retains the ability to pause or reverse the increases.

Officials will meet again on August 2. " — OPEC+ statement, July 5 (Euronews) Market analysts noted that recent quota increases have functioned largely as formal adjustments while physical supply was constrained by the blockade. Shipping volumes from Saudi Arabia have more than doubled since mid-June, and Iran has moved nearly 50 million barrels since the naval restrictions lifted.