Key facts
- Seven core OPEC+ members agreed to increase their collective crude production target by 188,000 barrels per day for August.
- This is the fifth quota increase since the US-Iran war began.
- OPEC's oil production in June rose by 3.3 million bpd from May to 19.43 million bpd.
- Despite the rebound, production remains below pre-war levels and collective quotas.
- The United Arab Emirates has exited the OPEC+ group.
- Oil prices declined following the announcement of the output increase.
Oil prices saw a slight decline after OPEC+ agreed to raise its output targets by 188,000 barrels per day starting in August. This decision comes as key producers, including Saudi Arabia, Kuwait, and Iraq, are increasing exports via the Strait of Hormuz, potentially adding to global supplies.
Despite the agreement for a further increase, the actual impact on supply remains limited as production is still ramping up after recent conflicts. The United Arab Emirates has left the OPEC+ group as of May. OPEC's total oil output in June rebounded significantly by 3.3 million barrels per day from May, reaching 19.43 million bpd, though it remains below pre-crisis levels.
Market analysts noted that the agreed-upon increase was largely in line with expectations. The recovery in Gulf oil exports and continued shipments from Russia, which has boosted crude exports due to refinery damage, are also factors influencing the market.