Key facts
- OPEC's total oil production increased by 1.17 million barrels per day in July.
- OPEC's output reached 19.85 million bpd in July, extending monthly increases.
- Iraq and Kuwait were the primary drivers of the July production rise.
- Despite the increase, OPEC production remains below its quota targets.
- OPEC+ plans to increase production targets by another 188,000 bpd starting in September.
OPEC's total oil production saw a significant jump of 1.17 million barrels per day in July, reaching 19.85 million bpd. This marks the second consecutive month of increases, driven primarily by restored output from Gulf producers. Iraq and Kuwait led the rise, with Iraq showing the largest monthly increase. Iran also boosted its supply to markets.
Despite the recovery, OPEC's output remains below its quota targets. This is attributed to ongoing security concerns in the Middle East, particularly related to the Strait of Hormuz, which has hindered a full recovery of production for Gulf producers. In May, OPEC's production had fallen to its lowest level since 2000.
Looking ahead, OPEC+ announced at its recent meeting that it would increase production targets by an additional 188,000 bpd starting in September. This move effectively unwinds the last portion of production cuts agreed upon in 2023. However, the practical implementation of this increase may be challenging due to the persistent security situation in the Persian Gulf.